During the 1930's, America witnessed a breakdown of the free enterprise system as the US fell into the worst depression in history. On October 24th, 1929 the New York Stock Exchange (NYSE) collapsed when millions of shares at inflated prices were offered on sale. Over $50 billions were lost on what was called "Black Thursday" when the stock prices returned to their actual value. Soon after the crash, the entire world economy began a period of deflation; prices and wages dropped as the demand for goods was reduced. This lack of need for goods halted production and closed several factories; people lost their jobs and businesses were bankrupt. By 1933, nearly half the nation's workmen were unemployed and many others had no hope of beginning new careers. The great industrial slump continued throughout the 1930's, shaking the foundations of American capitalism. The New Deal describes the program of US president Franklin D. Roosevelt from 1933 to 1939 of relief, recovery, and reform. These new policies aimed to solve the economic problems created by the depression of the 1930's. The New ......

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