The New Deal was important because it provided a safer employment outlook for the people of the United States by establishing retirement funds and Social Security, as well as creating more jobs, preventing government corruption and helping the country avoid another Great Depression. The Great Depression started on October 29, 1929, on what is now known as "Black Tuesday."Continue Reading
On "Black Tuesday," the stock market in the United States went on a complete downward spiral, despite having risen incrementally for years. This brought the United States into the most severe economic downturn the country had ever seen. Banks failed, and the money supply virtually disappeared. President Herbert Hoover told the populace to hold out and be patient while focusing on self-reliance. Hoover hoped that the Great Depression was merely a crisis and would go away in time.
When President Franklin Roosevelt inherited the presidency in 1933, he decided to take immediate action in an effort to stabilize the country and the failing economy. Throughout his 8 years in office, President Roosevelt would create dozens of programs as a part of his "New Deal." The New Deal was a collection of experimental projects all designed to help lessen the effects of the Great Depression and take America into a healthy economy.Learn more about US History