Collapse
The Wall Street crash of 1929 helped trigger a decade-long depression. By 1933, unemployment had risen from 3 percent to 25 percent, farm prices had fallen by half, and manufacturing output had dropped by one-third.
Relief, Reform, Recovery
Franklin D. Roosevelt’s New Deal created unemployment relief, Social Security, public housing, financial regulation, farm subsidies, and bankruptcy protections. The Works Progress Administration employed people on public projects, while the Civilian Conservation Corps offered work to young men. The Wagner Act strengthened labor unions.
A Lasting Political Transformation
The New Deal did not fully end long-term unemployment; wartime spending completed the recovery. Yet it established a new relationship between citizens and the federal government. Economic security became a national political responsibility rather than solely a private or local concern.
The New Deal’s most enduring legacy was institutional. Programs created during crisis continued shaping American life long after the emergency passed, demonstrating how economic catastrophe can permanently redefine the boundaries of government.