The Great Depression and the New Deal
The New York Stock exchange collapse in October 1929 that saw the selling of approximately thirteen million shares was the beginning of a devastating financial crisis: The Great Depression. The effects were far-reaching and long-term; it went on for about a decade (Bartlett). In fact, the industrialized world has never witnessed such a serious market collapse. Though it affected countries in Europe and North America and some other industrialized countries, the United States featured significantly and was one of the worst hit. In the United States, after the stock market collapse of October 1929, stock prices continued declining and had dropped to about twenty percent of their initial value by 1932. In
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As mentioned, more than fifteen million people were out of employment and unemployment insurance was something unheard of. Banks had failed in their hundreds and hourly wages had dropped by half. Approximately ninety thousand businesses completely failed and agricultural products prices had decreased to their lowest level. The high unemployment rates plus the even higher number of dependents made things complicated. The United States had never seen such hunger and poverty. Apples could be seen being sold at five cents each by former millionaires. This not being all, shanty towns sprout all over to cater for the homeless people, with even many more sleeping on the streets. More than twenty thousand Americans, in the year 1931, took their lives.
Any person who was fortunate enough to have some little money was considered very lucky. For an amount less than three thousand dollars, a house could be purchased. Shoes were sold at four dollars a pair, less than four cents for a shirt, and approximately ten dollars for a suit. Most of those who were lucky enough to have jobs did not have anything left after buying food and paying rent. It was useless to try and seek help from the government. Welfare programs to prevent people from poverty were