When he accepted the Democratic Party's nomination for the presidency in 1932, Franklin Roosevelt pledged "a new deal for the American people" (Atack, 1994, p. 625). When he assumed office, the American system of democratic capitalism faced a crisis of monumental proportions. Economic distress and social unrest were widespread. In 1929, Hoover's first year as president, the prosperity of the 1920s capsized. Stock prices climbed to unprecedented heights, as investors speculated in the stock market. The bender, in which people bought and sold stocks for higher and higher prices, was fueled by easy credit, which allowed purchasers to buy stock "on margin." If the price of the stock increased, the purchaser made money; if the price fell, the purchaser had to find the money elsewhere to pay off the loan. More and more investors poured money into stocks. Uncontrolled buying and selling fed an upward spiral that ended on October 24, 1929, when the stock market collapsed. The great crash shattered the economy. Fortunes vanished in days. Consumers stopped buying, businesses retrenched, banks cut off credit, and a downward twist commenced.
The Great Depression lasted through the 1930s. Since the crash of '29, the va
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On the right, conservative business leaders and politicians attacked New Deal. Schumpeter and Keynes disagreed on the remedy. 77-78), which had to inspect monopolistic conditions in the American economy. Watkins (1993) says that "from the spring of 1933 to the fall of 1937 the economy had enjoyed a steady, if undramatic, recovery, particularly after 1934" (pg. Americans came to accept government involvement and its responsibility in caring for society’s most poor members and controlling many divisions of the economy. 127 and 131) The other agencies were Works Progress
Administration and the National Youth Administration which were designated to aid schoolchildren and college students.
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