The Great Depression had a profound impact on the American economy, resulting in widespread unemployment, bank failures, and a decline in industrial production. The stock market crash of 1929, also known as Black Tuesday, marked the onset of the economic downturn. It led to a loss of confidence in the stock market and a significant decrease in consumer spending.

As the economy collapsed, businesses struggled to stay afloat and many were forced to lay off workers. The unemployment rate soared to a staggering 25%, leaving millions of Americans without a source of income. Furthermore, numerous banks failed, wiping out people's savings and further exacerbating the financial crisis.

In response to this economic catastrophe, President Franklin D. Roosevelt implemented the New Deal programs. These initiatives aimed to stimulate the economy and provide relief to those who were struggling the most. The New Deal included measures such as the creation of the Civilian Conservation Corps (CCC) to provide employment opportunities to young men, the establishment of the Works Progress Administration (WPA) to fund public works projects, and the implementation of Social Security to provide a safety net for the elderly and disabled.