Introduction

Tuesday, October 29, 1929, the day the stock market crashed and the official beginning of the Great Depression. During the Great Depression a few banks closed and caused panic across the country. Afraid they would lose their own savings, people rushed to banks that were still open to withdraw their money. This massive withdrawal of cash caused additional banks to close. Since there was no way for a bank's clients to recover any of their savings, once the bank had closed, those who didn't reach the bank in time also became bankrupt. Not only banks, but businesses and industry were also affected. Businesses started cutting back their workers' hours or wages. In turn, consumers began to curb their spending and refraining from purchasing such things as luxury goods. This lack of consumer spending caused additional businesses to cut back wages or, more drastically, to lay off some of their workers. Some businesses couldn't stay open even with these cuts and soon closed their doors, leaving all their workers unemployed. During this time, Hoover, the President of the United States was blamed for the Great Depression. After, in 1931, Roosevelt was elected for president, with high hopes the he would solve their woes.

Roosevelt created the program known as the New Deal to overcome the effects of the Great Depression. These programs expanded government intervention into new areas of social and economic concerns and created social-assistance measures on the national level. This way Roosevelt became the “hero” thanks to his programs that helped end with the Great Depression.


By María Fernanda Arroyo, María Laura Oconitrillo, María Paula Ortuño, Vivian Desangles