24). This period was also the start of complex social programs and signaled the wider acceptance of trade unions in the United States.
The New Deal policy was triggered by the initial crash for the US stock market, which occurred on October 24, 1929 followed by October 29 "Black Tuesday" in which the stock market fell even more than it had the week before. These events catapulted into a worldwide economic depression (Chandler 1970). This economic depression was manifested in the US through a 4 percent to 25 percent increase in unemployment incidence, alongside reduction of manufacturing output by approximately a third. Due to deflation of currency values, prices fell, making the repayment of debts much harder. The drop in values of the mining, lumber, and agriculture industries caused these items to drop as well. The impact of the depression was however not as severe in white collar and service sectors.
"Throughout the nation men and women, forgotten in the political philosophy of the Government, look to us here for guidance and for more equitable opportunity to share in the distribution of national wealth I pledge myself to a new deal for the American people. This is more than a political campaign. It is a call to arms."
Roosevelt formed the "Brain Trust," a group of academic advisers whose formation was aimed at assisting in his recovery efforts. ...Show more