The Great Depression started in 1929. The Depression started in New York and spread

throughout the United States in a matter of days. Although The Great Depression was mainly in

the U.S., it affected the whole world. For the most part Americans were affected greatly,

unemployment soared too unheard of levels, wages dropped dramatically,

and the economy fell apart.

The distribution of money in the 1920's caused an unstable economy. Franklin Delano

Roosevelt came into office four years after the depression started, he was determined to turn the

country around. FDR created The New Deal. The New Deal reshaped the economy, the stock

market, and the political spectrum. FDR's positive attitude inspired the American people to

never give up hope and to have faith in their country. The Stock Market Crash of 1929, also

called the great crash, American economic disaster that precipitated the great depression, an

approximately 10-year economic slump affecting all the Western industrialized countries.

During the mid-to-late 1920's, the stock market in the United States underwent rapid expansion,

reaching a peak at the end of August 1929. Prices began to decline in September and early

October, but speculation continued. On October 18 the stock market began to fall precipitately.

The first day of real panic, October 24, is known as "Black Tuesday," on that day a record

12,894,650 shares were traded. The stock's were selling too rapidly because people were losing

money.

A main hardship to the citizens of the U.S. was malnutrition. The first to feel the effects

of hunger were the children. At some homes, only a few family members could eat on a given

day. Children's education level was being lowered because some schools closed down, due to

lack of pay for teachers. Families had to foreclose on houses, leaving them homeless and

hungry. Towns, called Hoovervilles, sprung up. They were make-shift homes for people who

lost everything they owned. Many people worked fifty-five hours and only earned seventy-five

cents.

The New Deal legacy has many dimensions. It has brought hope and gratitude for some

people for the benefits they receive. It has also brought anger and criticism from those who

believe that it has taken more of their money in taxes and curtailed their freedom through

increased government regulations. The deficit spending necessary to fund New Deal programs

grew immensely as the nation entered World War II.

The end of the depression was sprung from both the New Deal, and World War II. The

New Deal helped the economy get back on track, and helped to bring the government programs

to full power again. World War II brought in war funds, from the production of goods to be put

out.

The Stock Market crash will live on in everyone's mind, primarily because it could

happen at any time again. The Great Depression could very well happen again, but a strong

economy will prevent it.