1. February 1928, stock prices rose for about a year and a half. Between 1928 and 1929 stock prices increased on average by about 40%. The trigger that caused the Great Depression was the stock market crash. In the fall of 1929 there were sharp drops in stock prices. On October 29, “Black Tuesday” was an attempt to save the market and all failed efforts rendered company stocks worthless. Despite the stock market crash, the first noticeable sign came in October 1929. Historians believed that this depression was significant in history because it lasted a very long time and was difficult. One factor that caused the depression was the lack of diversification. Automobile and construction were businesses that most industries truly depended on. The construction and automobile industries began to collapse in the late 1920s. The plastic, oil and chemical industries tried to expand the market, but failed because they were not fully developed to fill the gap. Another factor was the poor distribution of wealth. Consumer demand decreased and a stable market could not be created. In 1929, although the economy was growing, many Americans could not afford to purchase the goods produced by the industries. A third factor was that the credit structure of the economy was horrible. Farmers' crop prices were low and they could not repay their debts. Small banks that worked with farmers were chronically in trouble due to loans taken by customers. Even large banks were in trouble due to investments in stocks or loans. Most of these banks suffered from the stock market crash. Another problem was the decline in exports. In the 1920s American tariffs began to increase, so European demand had for American... middle of paper... ion. It didn't work, the economy was continually deprecated. Before the stock market crash, Hoover proposed an Agricultural Marketing Act, the government would help farmers maintain prices, instead of tightening food exports. Hoover's popularity chronically declines, there were Americans who blamed Hoover himself for the depression. In 1931 there was an international financial panic. Banks around the world were failing because they relied on American banks to repay their debts. In 1932 the Reconstruction Finance Corporation made loans to struggling businesses. It mainly helped large banks and businesses, but this aid also soon failed. Hoover failed to stop the panic because he was using the money the government had to help businesses and those businesses were still not bringing in any profits causing further debt and economic ruin.