New Deal

            
             The 1920's were a time of carefree fun. The slogan of the decade was "make a buck." Businesses were flourishing, people were happy, and the economy was booming. It seems ironic that the decade that followed was full of depression, both economically and mentally, poverty, and bankruptcy. .
             The economy was doing so well during the twenties that the factories started to mass-produce goods and the small percentage of people who were making huge profits off of the mass production put their profits back in the companies. Eventually the consumers couldn't keep up with the mass overproduction, so they started purchasing goods on credit. The producers made a stockpile and since the economy was soft they decided to stop production of goods. When they stopped the production of goods, they laid off many factory workers. Those workers who were let go could not pay back the credit that they owed. Everyone started panicking, so they rushed to the banks to take out their life savings, only to find that the banks had gone bankrupt. The poor distribution of wealth was such that wagers could not keep up with the market. In addition to the above, technology was quickly advancing, so there became technological unemployment; meaning machines took the place of humans. As a result of the combination of all this, the stock market came to a devastating crash in October of 1929. .
             America's economy was a mess. They felt that the government should not get involved in the economic and social aspect of America. 25% of America's workforce was unemployed, gross production and wages both went down 50%, 85,000 companies went bankrupt, and all the banks closed due to them being improperly regulated. Agriculture prices fell so low that the farmers were actually losing money to raise livestock and grow crops. In addition, the "dustbowl" pushed the farmers of the mid-west out of their farms and on to the roads.