The Crash- 1929

The Crash started with the roaring 20s, which was a prosperous time. It then led to the Black Tuesday, stalk prices began to drop, so people panicked and went to banks to remove their money. Thousands of banks closed that day. Franklin Roosevelt enforced The New Deal, which was created to help communities prosper with the help of the Government.

The US had a craving for normality. Out of that came energy and productivity, new technology and the idea of disillusionment. All of these things are producing change. Movies, radio, explicit music and fashion were all introduced in the 20s, this was the idea of morality. Divorce rates went up as the younger generation continued to shock the older generation. Sigmund Freud suggested more openness , he thought it was unhealthy to keep things to yourself. The Liberat Theory was also created, this theory questioned the bible. Leisure time also increased with the production of cars, movies, professional sports and car racing.

After ten years of growth Stalk Markets increased by 400%. On October 29th there was a massive sell off of Stalk. People panicked and went to banks to take it out. Within a few days stalk loses half of its value, and that will affect the rest of the economy. The four factors that caused the Crash were; reparations, speculations and overuse of Credit, which caused a lot of people to go into debt. This caused a general slowdown of the economy. The Crash worsens, unemployment rises, 9,000 bank closures, 1 billion dollars were pulled out of banks across the country. As well as the Dust Bowl, which destroys agricultural farms. 

Herbert Hoover lost to Franklin Roosevelt in 1932. Roosevelt’s philosophy of the New Deal; Progressivism, populism, rejection of free markets and a planned economy. Roosevelt enforced the CCC, FDIC and WPA, his Fireside Chats and Social Security were his greatest gifts. However, NRA, AAA and court packing were all not good ideas. 

The Government grew rapidly, and benefitted from the New Deal. there was a growing idea of Socialism, because the Government was becoming more in control of things. There was a major change in mindset from the American people, there was a greater dependence  on the Government than ever before, as well as a desire for a bigger Government. Miss Guided ideas made the Great Depression much worse and caused it to last longer. Unemployment increased to 24% and Government intervention made things worse.