(Feb’16) Specifically, it wasn’t the crash (which unfolded over a month-and-a-half, only destroyed 1-1/2 years worth of gains and was largely recovered by April 1930) and more by the response:
1. Hoover and the Fed’s tight money supply (starting before the crash).
2. Hoover extracting a pledge from employers and unions to freeze wages.
3. The Smoot-Hawley trade war (signed June 1930)
4. Hoover’s bully pulpit against “speculation” in the stock market and
5. Roosevelt doubling down on Hoover’s strategies in new, unpredictable and punitive ways every year or two.