Great Depresstion

When the stock market crashed on October 27, 1929, it lead to the Great Depression which changed the lives of millions around the world. Before the crash, the American unemployment rate averaged 3 percent, however by 1933, 25 percent of all workers and 37 percent of all non-farm workers were unemployed(Smiley). This economic collapse left millions of Americans completely hopeless because many were left poor and hungry. Americans around the nation did not know how best to respond to the crisis, including the US government itself. During the 1930's, Americans who had formerly been able to earn a living and take care of their families lived in extreme poverty(Smiley).

Americans who were hit the hardest by the crisis were left devastated financially as well as emotionally. People were used to the idea of working hard and reaping the benefits of making an honest living. The government, as well as the people, was no longer able to rely on a self-esteem that was based off of working hard and prospering. Many Individuals and families had to struggle not only with an existence that pushed people close to suicide and starvation, but a total loss of self-worth. Americans were starving and many lost their homes and farms. Families who were desperate for money would often separate so they could search of individual work that would enable them to buy food and provide shelter for their families. Many were so desperate that the suicide rate actually increased from 14 to 17 percent per 100,000(Kelber). Americans felt they were doomed for failure and were looking towards the government for help them through this difficult time.

President Hoover's response for a potential solution to the depression was based largely on voluntarism. Hoover believed that doling out government money would do more harm than good and that local governments and private charities should provide relief to the unemployed and homeless(Kelber). Hoover stated that federal funds were not needed and that charity and local government would meet the needs of the unfortunate. Individual states did begin to offer local aid to communities but this was only helpful to a very small proportion of the people in need. By 1932, only 1.5 percent of all government funds were spent on relief and averaged about $1.67 per citizen; the nation continued to suffer(Kelber).

When President Roosevelt took the oath of office in 1933, the number of unemployed had risen from 8 million to 15 million, roughly one-third of the non-farmer workforce. In a country of some 120 million people, probably more than 40 million were either unemployed or members of a family in which the main breadwinner was out of work(Kelber). Roosevelt promoted a wide variety of federally funded programs with goals of restoring America's economy and helping to relieve the suffering of millions of Americans who were unemployed. Upon accepting the 1932 Democratic nomination for president, Franklin Roosevelt promised "a new deal" for the American people. Roosevelt was quoted saying in Times Magazine:

"Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth... I pledge myself to a new deal for the American people. This is more than a