Cause:
It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.
Solution Used:
Within the New Deal, new laws regulated the stock market and protected bank deposits, government programs created jobs and helped farmers, and a new Social Security system was provided the elderly with pensions and other benefits.
