The 1929 Crisis, also known as The Great Depression, was the biggest crisis of financial capitalism. The economic collapse began in mid-1929 in the United States and spread throughout the capitalist world. Its effects lasted for a decade, with social and political developments.
The main causes of the 1929 Crisis are the lack of regulation of the economy and the supply of cheap credits. Likewise, industrial production was at a fast pace, but the population's consumption capacity did not absorb this growth, generating large inventories of products in order to expect better prices. Europe, which had recovered from the destruction of World War I, no longer needed American credits and products.
With so much speculation, the stock starts to devalue, which causes the crash or crack of the New York Stock Exchange on October 24, 1929. This day would be known as "Black Thursday." The obvious result was (widespread) unemployment or wage cuts. The vicious cycle was completed when, due to lack of income, consumption fell further, forcing prices to fall.
Franklin Delano Roosevelt's biggest challenge was to rebuild the largest economy of the time. Inspired by the principles of economist John Maynard Keynes, a group of government economists proposed the so-called New Deal.