Franklin D. Roosevelt began his presidency in 1932. Immediately he began working on what would become the “New Deal”.  Roosevelt’s New Deal was the beginning of effective programs such as the Federal Deposit Insurance Corporation (FDIC), Civil Works Administration (CWA), Public Works Association (PWA), Civilian Conservation Corps (CCC), Fair Labor Standards Act of 1938 and Social Security Act. These programs helped with job creation, job training, wage control, financial assistance and housing. Other programs created within the New Deal such as the National Industrial Recovery Act (NIRA) of June 1933 and Agriculture Adjustment Administration (AAA) did not work quite as well as thought to have and were declared as being unconstitutional (Franklin D. Roosevelt American Heritage Center, Inc., 2007). It wasn’t until the late 1930’s that the Depression’s hold on America began to weaken. With the start of WWII, fighting countries looked to America to build military supplies and that provided the much needed boost to the economy.

The Stock Market Crash of 1929

The Stock Market Crash of 1929 occurred on black Tuesday October 29,1929. The cause of stock market crash of 1929 is debatable – mostly attributed to speculation and overpricing of stocks.  The effects of the stock market crash of 1929 was most people lost all their earnings overnight.  Banks which have invested in the shares were also in trouble.  Effects of stock market crash of 1929 banks started recovery from its borrowers who were not able to pay. Since banks had paper securities worth nothing depositors started withdrawing from banks.  

This Stock market crash of 1929 is also called as Wall Street crash 1929 or October Market crash.  Wall Street 1929 saw a panic among stock holders who were selling in panic causing stock market depression.   The reasons for stock market crash of 1929 though mentioned as speculation the stock market in the 1920s was growing steadily such that none could anticipate the crash of the stock market in 1929.   Stock market crash of 1929 black Tuesday was preceded by Black Thursday on which day also stock index dropped more. 

Stock market crash history is not complete without the mention of stock mart crash of 1929 great depression.   Stock market crash history also has mention about the loss the business and industry suffered. The great stock market crash of 1929 resulted in lay off of many workers.  Stock crash 1929 also affected the small farmers.    Market crash 1929 also followed by drought and horrendous dust storms affected farmers.   Great Stock market crash resulted in young men and women had to go from one place to another to find job was the causes of crash of 1929.  Reasons for the stock market crash of 1929 are not understood properly is evidenced by further stock market crash of 1987.

Stock crash 1929 was followed by further drop in share prices and in 1932-33 saw the bottom level down about 80% of their level in 1920s.   1929 stock market crash brought Great Depression resulting in untold sufferings to all levels of people.  Causes of the crash 1929 can also be attributed to great expansion of investment trusts, public utility companies, margin buying resulting in pushing their prices to artificial heights.

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Many bank failures,together with low incomes among farmers,and factory workers helped to set the stage.Uneven distribution of income among workers also contributed to the slump.Most economists agreed that the stock market crash of 1929 is what started it all.Stock values fell for the next three years.Business failures increased rapidly,as unemployment continued to soar.Millions lost their jobs,savings,and homes.What they did manage to purchase was on credit with no way to pay it back.But the banks were unable to lend any more,and hundreds continued to fail.

Human suffering became a reality for millions of Americans as the depression continued.Many died of disease resulting from malnutrition.Thousands lost their home because they could not pay the mortgage. In 1932,at least 25,000 families,and more than 200,000 young people wandered through the country seeking food,clothing,shelter,and a job.

Many of the young people traveled in freight trains,and lived near train yards called hobo jungles.The homeless,jobless travelers obtained food from welfare agencies,or religious missions in town along the way.Most of their meals consisted of soup,beans,or stew and had very little nourishment.The travelers begged for food,or stole it if they could not get something to eat.They even ate scraps of food from garbage cans.

The ragged travelers found clothing even harder to obtain than food.Missions gave most of the clothing they had to the needy local people.Many of the travelers became very ill because they did not have food,or proper clothing.Even the sick wanders had trouble getting help because the hospitals aided local residents first.

Many people who lost their homes remained in the community.Some crowded into the home of a relative,others moved to a shabby section of town and built shacks from tin cans and old crates.Entire families would live in old rusted out car bodies,or what ever they could find.

The Great Depression ended after nations increased their production of war materials at the start of the war.This increased production provided jobs,and put large sums o money back into circulation.The depression had lasting effects on the United States government,and on many Americans.