The Great Depression and the New Deal
             In the 1930's American found itself in the worst depression the country had ever seen. Franklin Roosevelt was the president at the time. His plan for restoring economical health in the US was called the New Deal. The New Deal created controversy debate and also some success. There were many causes of the Great depression. Roosevelt New Deal attempted to relieve the crisis by many ways. There is a still a great effect today by the New Deal.
             There were many causes of the great depression. The major causes were the 1920's out of balance, Americans are increasingly in debt, and overproduction slows industrial growth, speculation on the rise, a tight money policy in order to control credit and the Stock Market Crash in Oct. 1929. For example, there was uneven prosperity. This means that the rich got richer and the poor got poorer. Huge corporations rather than small businesses dominated industry. Also, a small percentage of families held most of the nation's personal wealth. Only .1 percent of the population had incomes over 100,000 dollars. Most of the families were poor, earning just around or below 2,500 dollars per year. Another sign of trouble was an increase in personal debt. In the 1920's assembly line production made consumer items more affordable and available. People bought radios, refrigerators, and other exciting new products whether or not they could afford them. Installment plans made expensive items m!
             ore attainable. In addition American had a slogan of "get rich quick." The climb of stock prices encouraged widespread speculation. Many ordinary people had made fortunes. Small investors invested in the stock market with their whole life savings. The stock market had a policy of buying on margin where investors purchased a stock for only a fraction of its price. The market crashed, and it closed down. Also, overproduction caused industries to slow do...