The Great Depression was a period of worldwide economic depression exemplified by mass unemployment in the United States. The drastic change in American culture has had long-lasting psychological and social effects on citizens. From the Roaring '20s, a decade of luxury, exorbitance, and superficial prosperity, America had slowly transitioned into a time of hardship, desperation, and sadness. Through economic suffering, the Great Depression had a psychological effect on consumer and citizen confidence and influenced many social changes. The Great Depression dramatically changed the way people viewed money. In the run-up to the Great Depression, many Americans engaged in a practice called installment purchasing. Splurging on many of the technological wonders invented in the 1920s (cars, refrigerators, vacuum cleaners), Americans simply lived on credit. The popularity of installment plans has created a culture of poor financial judgment. This culture spread to the stock market and soon the stock market infiltrated the minds of those looking for a get-rich-quick formula. Risky business practices such as buying stocks “on margin” allowed stockbrokers to buy stocks for only a fraction of the price while borrowing the rest for the bank. Margin buying and increased speculation eventually caused stock prices to become artificially high, and panic eventually broke out. On Tuesday, October 29, commonly known as Black Tuesday, the stock market had crashed. This had a domino effect as those who bought on margin failed to pay back their money and ultimately caused a collapse of the banking system, leading to incomes plummeting, creating a ripple effect that shook the world. As the Great Depression deepened...... middle of paper ......nsaw) were adopted and forced those who were unsuccessful to live on the outskirts of the city: called hoovervilles. The Great Depression brought myriad changes including increased social programs and greater government participation in the economy. One of the pillars of FDR's New Deal program is to provide direct aid to those immediately affected by the economy. Through the NEW DEAL, FDr participated in civilian spending and created many social programs that still exist today. Additionally, he passed many laws that reformed banking practices and agricultural prices. In conclusion, the Great Depression had a profound effect on American society as a whole. It has curbed the way Americans view money, caused mass unemployment and poverty. But ultimately, it caused the government to respond to underlying problems such as agriculture, banking and welfare..