One observer pointed out to Franklin D. Roosevelt upon taking office that, given the present crisis, he would be either the worst or greatest president in American history. Roosevelt is said to have responded: “If I fail, I shall be the last one.” By the time Franklin Roosevelt was elected in 1932, the traditional ideologies and institutions of the United States were in a state of upheavel. Americans who had grown up promoting the ideology of the “deserving and undeserving poor” and the stigma of poor relief were now standing in line for relief.

The cultural and political currents that shaped American society during the early decades of the twentieth century had a decided effect on the configuration of the American welfare system as it appeared in the 1930s. Social workers, politicians, and reformers carried those currents into the maelstrom of the Great Depression to influence New Deal policy.

On October 29, 1929, the crash of the U.S. stock market—known as “Black Tuesday”—reflected a move toward a worldwide economic crisis. In 1929-1933, unemployment in the U.S. soared from 3 percent of the workforce to 25 percent, while manufacturing output collapsed by one-third.

In late October 1929 the stock market crashed, wiping out 40 percent of the paper values of common stock. When the stock market crashed in 1929, it didn’t happen on a single day.