The New Deal

683 Words2 Pages

After the end of the World War I in 1920, the United States entered in a period where great changes were made. During this period known as the New Era of the 1920’s, many innovations were taking place as well as many economic developments, which were stimulating the way through a change in America’s society. However, while for some Americans this was an era of better opportunities for living, some others were suffering the consequences. Later on, with an unequal distribution of wealth and low incomes, America’s economy was in a vulnerable point of a catastrophic collapse. And so it was. By the end of the 1920’s, when the stock market crashed, the prosperity of that period disappeared and the nation was sunk into an economic catastrophe known as the Great Depression. Many factors constituted the reasons for this collapse, for example, the Wall Street crash, the oligopolies domination over American industries, the weaknesses in some industries (textile, coal and agriculture), and also the government policies and international economic difficulties. Then, by the early 1930 with the depression spreading and affecting the entire society, the policies, philosophy and optimism that Herbert Hoover had brought to his presidency was being challenged. As a result, by the time of the elections in 1932, Hoover lost the presidency against the candidate of the Democratic Party, Franklin D. Roosevelt and his campaign of what he called the New Deal. Based on this, FDR pushed towards many solutions for the “crises of a collapsing financial system, crippling unemployment, and agricultural and industrial breakdown” (Goldfield, Page 704). Even thought when various changes were made, it was during the period right after the elections of 1936 that polit...

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