History Homework Help

Get help at All Essays

Question:
No one could have foreseen just how strong and deep the decline would become. In the 1920’s consumer spend was at all-time highs. Participation in the stock market was growing with expectations of easy money with limited risk. The stock market crashed starting on 25 October through 13 November 1929. As more and more people defaulted on loans, banks found themselves unable to continue business and shuttered the doors. Thanks in part to the collapsing economy coupled with risky investment practices banks lost the savings of their customers.[2] As the market declined so did consumer confidence which only proved to deepen the decline. Consumers stopped spending and tightened their budgets to weather the storm. This created a low demand on goods which depressed the prices of said goods. The ripple effects of the depression could not be stopped. The depression forced nearly a quarter of the population into unemployment.[3] Looking for answers and relief, the nation elected Franklin Delano Roosevelt into office (FDR). FDR used the radio to regularly address and update the nation while calming their fears. [4]FDR had an answer for America and it was called the New Deal. The New Deal was multitude of programs instituted by FDR and his sympathetic Congress.