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During the 1930’s Americans experienced the Great Depression as well as the New Deal. During this time the relationship between the government and citizens changed drastically. The government took a grater roll in the everyday lives of citizens both socially and politically. The New Deal created by the Roosevelt Administration made an attempt to stimulate the economy during this very thorny time. In the following essay we will discuss the factors that caused the great depression and the mark it left in the United States of America. We will discuss the different approach taken towards the great depression between president Roosevelt and President Hoover. We will also discuss the most significant policies created by the Roosevelt administration while in his quest to bring financial security to America and who were his biggest critics during his pursuit. Lastly we will discuss the New Deals legacy during the 20th century and how it impacted the lives of citizens in the United States. The Great Depression was not caused by one factor, but rather a combination of domestic and worldwide conditions. The impact of the great depression was felt by all in America and paved the way to the creation of the New Deal. One of the causes of the Great Depression was over production; this affected the companies because they manufacturing an excess of items that were not being purchased. Companies still kept up high production rates but fired many of the workers. The Unemployed citizens could not afford to buy the items. Another reason that paved the way towards the Great Depression was under consumption. This impacted the companies because the ability to produce is much higher than the ability to consume. Citizens were very careful in spending the little

2 they had and this was a reality for most of the American population. The third cause of the great depression was the unequal distribution of wealth. The rich were stable and had everything they needed and on the other hand the majority of citizens no none or little money and survived on the little they had. Because of this they could not afford to purchase any goods, put companies in bad situations with an overload of goods in stock. In consequence of these three fundamental causes stock market crashed in October of 1929, on a day that was referred to as Black Tuesday.1 In consequence of those three factors that caused the Great Depression were the bank closures and as result of that citizens were loosing their savings and financial security.2 Because of the Great Depression many citizens lost their jobs and making them unable to pay for items purchased via credit and that caused a rise in repossessions. During the 1930’s unemployment rate in the nation rose to above 25% and this also affected the economy severely because citizens are spending less to try and alleviate the economic hardship.3 This did not affect those that were fortunate enough of being rich and this is why the distribution of wealth caused so many problems. The severe draught conditions during the 1930’s also know as the Dust Bowl played a big role in the Great Depression. The Dust Bowl really affected the Midwest by killing crops. The windy conditions created sand storms that deposited mounds of dirt on everything in its path, from crops to the lives many innocent people. Consequently the banks had to reposes many farms; and
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the repossessions left banks with properties lined up without use because farmers were not able to produce enough to pay their mortgage. The Citizens of the United States did not only have to deal with the devastating effects of the Great Depression, but also the views and beliefs of one of the most controversial presidents of all times. President Hoover and his administration believed in keeping a balanced budget and did not believe that the government should be investing money into to restoring the economy. President Hoover believed that people