The Great Depression, which lasted from 1929 to 1939, was the most severe economic downturn in the nation's history. People who had invested in stocks on Wall Street were wiped out. Unemployment soared to 25%. Banks failed. Hopelessness became prevalent as years went by with no end in sight. President Herbert Hoover did not do enough to help newly impoverished millions, and shantytowns became known as Hoovervilles. Already struggling farmers found themselves even worse off.

Franklin Delano Roosevelt easily won the election of 1932, and he promised to help the country recover. He was only partially successful. FDR's "fireside chats" via radio gave hope to Americans, and he brought enormous changes to the country. Roosevelt restored the public's faith in banks by insuring their deposits. Millions of Americans were put to work in the Works Progress Administration or other government programs. Farmers were assisted, and many of them received electricity for the first time. Social Security helped people in their retirement. The stock market was regulated.

Although FDR's ambitious programs helped Americans both materially and spiritually, they did not end the Depression. The Depression continued through the decade of the thirties. Finally, the stimulating effects of World War II (1939–1945) brought the country to a full recovery.