The 1920s featured large-scale consumption consumer products, which was good for American industry. But this caused many to become in great debt and after stock market crash many has lost their business due to bankruptcy and this made the unemployment rate skyrocket. Due to massive unemployment and With so many Americans unemployed and poor, almost nobody could contribute like they did to the economy in the 1920s and because of this America experienced extreme deflation. Also, because of world war one, many European countries were in severe debts due to respiration and thus made them all unable to contribute to international trade and their own national economy thus sending them further into a deep depression. The New Deal was a wave of government programs intended to fix the depression and prevent future depressions. The New Deal was centered around programs of relief, reform, and recovery. The relief programs help the unemployed people in need. Recovery programs were to help fix the economy and put people back to work and reform programs regulated the economy to prevent future depressions.
