After WW1, the United States suffered from a Great Depression. The Great Depression took place due to several factors, one of these is the stock market crash on October 24th, 1929, after people began to sell their stocks. The price of shares dropped harshly, leaving financial loss and panic. The long and devastating crash had never been seen before, it had a great impact on the United States economy. Many Businesses closed including banks, putting millions of people out of work and creating distrust of the financial industry. The wages for those still fortunate enough to have work fell sharply. Money inflated as the demand for goods reduced (Hardman). Americans were in great despair and had lost hope, but after four years, Franklin D Roosevelt became the new president of the United States and brought hope to the people with his New Deal. The new deals purpose was to completely reverse the effects of the Great Depression. Nevertheless the New Deal did not create a full recovery from the Great Depression, yet it left a real effect in two places, the American government and American society. .
The New Deal focused on Roosevelt's three R's: relief, recovery and reform. He wanted to relieve people from suffering, create reforms so that the great depression will never happen again and to recover the economy. Amid the foundation of the new deal, the balance of power moved in between congress and the presidency, with the president picking up more power (Globe Fearon 598-599). The New Deal reinforced the Democratic Party and government control all together by establishing a political coalition that supported the Democratic Party as the dominant party in national legislative issues for at least an era. Many historians agree that during Roosevelt's twelve years in office, there was a huge escalation in the power of the national government in general. Roosevelt additionally settled the administration as the conspicuous focus of power inside the central government.