Impact of Depression
The years after the Wall Street Crash were known as ‘The Depression’ because the economy and people feelings were so low!
During the depression a fifth of all banks had been forced to close. Lots of people's life-savings had been lost. By the beginning of 1933 the American people were starting to lose faith in their banking system and a significant proportion were withdrawing their money and keeping it at home which just made the situation worse as more banks had to close.
The President at that time was a man called Herbert Hoover. He believed that if you were in trouble you should help yourself and not expect others to help you. This he called "rugged individualism". Therefore he did not do a great deal to help those out of work.
There was no
system of benefit for the unemployed. Some people actually starved to
death. Others deliberately set fire to forests to get temporary
employment as fire fighters while farmers killed their animals as no-one could
afford to buy them, even if they were starving.
