The Great Depression Sets In
The Great Depression was the most severe and enduring economic collapse of the 20th century, and included abrupt declines in the supply and demand of goods and services along with a meteoric rise in unemployment. 1933 is generally regarded as the worst year of the Depression: One-quarter of America’s workers—more than 15 million people—were out of work.
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As America's housing and economic crisis worsened through 2009, homelessness was on the rise. Encampments and shantytowns often referred to as tent cities—with similarities to Hoovervilles—began appearing in parts of California, Arizona, Tennessee, Florida, Washington and other states.
Multiple factors led to the Great Depression, including the U.S. stock market crash in October 1929 and the widespread failure of the American banking system, both of which helped destroy confidence in the nation’s economy.
Additionally, although the 1920s, also known as the Roaring Twenties, had been a decade of prosperity, income levels varied widely and numerous Americans lived beyond their means. Credit was extended to many so that they could enjoy the new inventions of the day, such as washing machines, refrigerators and automobiles.
As the optimism of the 1920s gave way to fear and desperation, Americans looked to the federal government for relief. However, the country’s 31st president, Republican Herbert Hoover, who took office in March 1929, believed that self-reliance and self-help, not government intervention, were the best means to meet citizens’ needs.
In his estimation, prosperity would return if people would simply help one another. And although private philanthropy increased during the early 1930s, the amounts given were not enough to make a significant impact. Many Americans in need believed the resolution to their problems lay in government assistance, but Hoover resisted such a response throughout his presidency.