The Great Depression was a time of crisis and hardship in the lives of all Americans. It was a sudden change from the prosperity of the 1920's. Many Americans were unemployed and jobs were scarce. No longer could Americans indulge in the luxuries available during the 1920's. They now had to struggle just for necessities. The physical effects were great, but the emotional and psychological effects played a large role in the whole of the nation. During this time, the government worked hard to stop these effects and fix the country. President Roosevelt was a major supporter and leader of this campaign to rebuild the nation. His promise to restore the economic prosperity of the United States was shown in his many acts through the New Deal. Although these new laws could not fix all the problems at once, it was definitely a good start in the right direction for our country. The New Deal made improvements that began to pull the nation out of its long Depression.
The causes of the Great Depression related to the way Americans were living in the 1920's. The luxury items began to advertise with "buy now, pay later," so many Americans became deep in credit debt. America also lent money to European countries, that had trouble paying us back. The stock market hype created many credit problems. Americans believed that anyone could get rich, and this led many to the market. They used loans and gambling to buy stocks. The stock market crash in 1929, created the downward spiral of the Great Depression. As people began to panic as the market fell, stocks were sold all at once. The amount of money lost was estimated to be 30 billion. .
Also, during this time farmers were struggling as prices fell and they were unable to sell their products for a profit. .
As the Great Depression progressed, President Roosevelt worked hard to control the effects and put a stop to the crisis. He put the legislation program, called the New Deal into effect.