October 24, 2026
The election of 1920 gave the Republicans control of the White House and Congress, Republicans rejected the Progressive Era’s idea that government should regulate business and protect workers and consumers, and turned the government over to businessmen, At first industrial production took off and profits rose, As standards of living improved, consumers rushed to buy new products, and presidential candidate Herbert Hoover promised that the economic policies favoring business would banish poverty, Americans invested in the stock market and prices rose and rose, There was a rush to speculate and any warnings that the stock prices were a bubble were dismissed, On October 24, the tide turned as brokers began to sell off shares, and by the end of the day on October 29, an extraordinary number of shares had traded hands and the market had lost $14 billion. Manufacturing output fell and commodity prices tumbled, and by 1933 the number of unemployed across the country rose to 13 million - one out of every four American workers, Republicans blamed workers, and Hoover rejected calls for public works programs that would provide jobs, In 1932 Americans - looking for a new approach - elected New York governor Franklin Delano Roosevelt, who promised to use the federal government to provide jobs and a safety net to Americans, His New Deal protected workers’ rights, provided jobs, regulated business and banking and provided a basic social safety net. The new system enabled the US to defend democracy when WWII broke out.
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