Introduction

Embedded within the timeline of a nation's history are certain extraordinary events that spur rapid change within the society and impact the political life and thinking of the people for decades thereafter. In the timeline of the United States, such events include the American Revolution (1775–83), the Civil War (1861–65), World War II (1939–45), and perhaps the Vietnam War (1954–75). Aside from wars, other momentous and highly influential events include the industrial revolution (roughly nineteenth century), the civil rights movement of the 1950s and 1960s, and the Great Depression (1929–41). The Great Depression was the longest and worst economic crisis in U.S. history. It was not only economically devastating for millions, but was a personal tragedy for Americans from the very young to the very old.

What could cause such a dramatic economic downturn in the United States? To most Americans it seemed the prosperity of the "roaring" 1920s would go on forever. Yet, throughout the 1920s economic difficulties in certain segments of the American economy began to surface. Industrialization, that is, the development of industries that mass-produced consumer goods such as washing machines and automobiles, dramatically affected the United States. Rolling off assembly lines at ever increasing rates, goods were touted by advertisers who encouraged consumers to borrow money to buy the goods, a practice known as buying on credit. In the 1920s American values of thrift and saving money increasingly gave way to accumulating debt as Americans bought the latest products on "credit" just as soon as the products appeared in the stores. Banks eagerly made loan after loan. However, by 1929 this buying had slowed. It seemed consumers could only buy so much.

The major share of wealth in the nation rested in the hands of a tiny percentage of individual families. The very wealthy could not sustain enough buying power to make up for the slowdown in buying by the rest of the population. Goods began to accumulate on store shelves forcing factories to slow down production and lay off workers.

Another sector of the U.S. economy experiencing difficulty was the agriculture sector. Farmers had been overproducing since the end of World War I (1914–18) even after the drop in overseas demand for their products. The glut of farm products had driven farm prices so low that farmers could barely earn a living much less buy consumer goods. Farm families still accounted for 25 to 30 percent of the U.S. population, so a significant number of Americans were already struggling.

Although these various signs of economic trouble began emerging in the 1920s, hardly anyone paid attention. The majority of Americans were enjoying prosperity as never before. So, when in October 1929 the U.S. stock market crashed, the American public was shocked. They suddenly realized the economic health of the nation was not as good as it had seemed. Billions of dollars were lost and small investors were wiped out. Although the stock market crash was only one of a number of factors leading to the Great Depression of the 1930s, in the public's mind it has always marked the start of the worst economic crisis in U.S. history. By 1932 twelve million workers, amounting to over 25 percent of the workforce, were jobless. Industrial production had dropped to 44 percent of the average in the 1920s. For those who kept their jobs, incomes dropped an average of 40 percent between 1929 and 1932.

For the first time many citizens questioned the U.S. system of democracy and capitalism (an economic system in which goods are owned by private businesses and price and production is decided privately). They also questioned the notion of individualism, the American belief that people can successfully make their own way in society without government intervention. The prevailing mood of the nation moved from opportunity to despair; from progress to survival. A philosophical tug of war raged between big business, who wanted to work out the country's economic woes voluntarily, and those who wanted government to begin regulating business. President Herbert Hoover (served 1929–1933) was unable to halt the economic slide.

The inauguration of Franklin D. Roosevelt as the thirty-second president of the United States in March 1933 signaled the beginning of a new relationship between Americans and their government. For the first time in U.S. history the people began to look to the government to aid in their economic well-being. For many Americans, President Roosevelt's introduction of an incredible variety of social and economic programs, known as the New Deal, brought hope again. People believed they had a leader who actually cared about their welfare and establishing economic safety nets. The New Deal programs were designed to first bring relief (food, clothing, monetary payments) to Americans hardest hit by the Depression. Next came the recovery and reform programs to stimulate the economy and put into place plans that would lessen the danger of future depressions. Government became intricately involved in business regulation, labor organizations, public support of the arts, social security, resource conservation, development of inexpensive and plentiful energy sources, stock market reform, farming reform, photodocumentary journalism, housing reform, public health programs, and increasing the number of minorities and women in public life. Business leaders and the well-to-do despaired that the atmosphere of laissez-faire (in which industries operated free of government restraint) was over. Government regulations and higher taxes ended the long tradition of industry voluntarily regulating itself.

As the Depression lingered on through the 1930s, various segments of American society were affected differently. Those in the middle classes learned to "make do," creating meals from simple ingredients, making their own clothes, finding entertainment at home with board games and listening to the radio, and helping other family members who had lost their jobs. The extreme competitiveness and consumption-oriented values of the 1920s gave way to cooperativeness and neighborly help. Those Americans already considered poor or part of a minority group suffered mightily during the Depression. In contrast America's wealthiest families, for the most part, seemingly ignored the Depression and continued their luxurious lifestyle.

Roosevelt's New Deal did not lead directly to major economic recovery for the United States. By the mid to late 1930s President Roosevelt hesitated to spend the amount of money necessary to push the economy into complete recovery. While the New Deal programs did not stop the Depression, they did end the dramatic plunge in the economy and gave food and shelter to those most in need. The Great Depression did not fully end until 1941, as the United States prepared for World War II. The mobilization of industry to manufacture massive quantities of war materials and the growth of the armed forces at last ended the Great Depression.

The extraordinary event of the Great Depression brought major change in how Americans view government. Historically the federal government was viewed as detached from the everyday activities of Americans. The severity of the Depression made Americans consider, even demand, that the federal government act to enhance and insure the well-being of its citizens. At the beginning of the twenty-first century debate continues over how far the government should go in guaranteeing the financial security of its citizens. Debates still rage over government regulation of business, individualism versus cooperation for the common good, and over specific issues such as the Social Security system, the role of labor unions in business, and the welfare system providing aid to the nation's poorest.

We have, in Great Depression and New Deal: Almanac, concentrated on the actual event of the Great Depression rather than simply relating all general happenings of the 1930s. The volume covers the major events, themes, and effects of the Depression on different segments of U.S. society and U.S. popular culture. Its chapters cover the causes of the Depression, the New Deal programs, and the impact on the everyday life of Americans. Our goal throughout is to provide a clear, accurate account of a highly complex and difficult decade in American history that continues to impact the United States in the twenty-first century.

Sharon M. Hanes and Richard C. Hanes