In the early 1920s Americas economy was at its best. At this time the stock market was really doing good. With the boom of the stock market Americans began to have an optimistic view of the economy. With this attitude Americans wanted to buy more. But most Americans did not have the money to buy goods that they wanted. Since the majority of the population did not have enough money to purchase these goods, the solution to the problem was to allow those who wanted these goods to purchase them on credit. A concept of buying and paying later was quickly adopted and by 1929, sixty percent of all cars and 80 percent of all radios were bought on this installment credit (Shepherd). Unfortunately with so many Americans taking advantage of this buy now pay later, the national debt rose. Between 1929 and 1929 the total amount of credit in

“In 1932 the Great Depression engulfed urban as well as rural America. Since 1929 national income has declined more then 50 percent. Manufacturing output in 1932 was just half of what it had been three years earlier. Business failure had increased each year since 1930. By mid-year nearly 12 million workers were unemployed, and perhaps half that numbers were working reduced schedules. These involuntary part timers were suffering doubly from shorter hours and deep cuts in wage rates. As a group American wage earners were paid 40 percent less in 1932 than 1929. Poverty increased among urban workers and their family”(47 Edsforth).

With the Social Security Act in place, millions of Americans lives would be changed positively. For the elderly, the individuals who had worked and contributed to the insurance fund could earn a monthly payment. This would allow them to retire and let the young be able to have a job. This monthly payment would be a minimum of $10 a month and could be as high as $85 a month (Perkins 164). Unfortunately the elderly receiving this monthly payment could not begin receiving it until 1942. This is seven years after the act was enacted. Along with the elderly, under privileged children, mothers, unemployable and being who were blind received monthly checks.

Americans knew something need to be done. They realized that President Hoover was not going to do it. In the election of 1932 they elected former governor, Franklin D. Roosevelt.

Unfortunately Hoovers plan failed. Instead of trying to give money to the people and helping them out, he was more concerned with helping the banking industry. Even with the entire money president Hoover gave to the banks, it could not keep them up and running. With most families life savings in the banks families were left with nothing. They had no money and no jobs. In the middle of 1932, one in every four workers was out of a job (Easforth 65). Without a job men could not afford to support their families and this caused many of them to go homeless.

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