The Great Depression was a period of global economic depression illustrated by mass unemployment in the United States. The radical change in American culture has had lasting psychological and social effects on citizens. Since the Roaring Twenties, a decade of luxury, exorbitance, and superficial prosperity, America has slowly moved into a period of hardship, despair, and gloom. Through economic suffering, the Great Depression had a psychological effect on citizen and consumer confidence and influenced many social changes. The Great Depression dramatically changed the way people viewed money. In the period leading up to the Great Depression, many Americans engaged in a practice called installment buying. Splurging on many of the technological marvels invented in the 1920s (automobiles, refrigerators, vacuum cleaners), Americans lived simply 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 seeped into the minds of those who were looking for a get-rich-quick formula. Risky business practices such as buying stocks "on margin" allowed brokers 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 be artificially high and eventually a panic broke out. On Tuesday October 29, commonly known as Black Tuesday, the stock market collapsed. This had a domino effect, as those buying on margin were unable to repay their money and ultimately caused a collapse of the banking system, causing revenues to plummet, creating a ripple effect that shook the world. When the Great Depression increased... middle of paper ......nsaw ) were adopted and brought those who had failed to live on the outskirts of the city: called hoovervilles. The Great Depression brought about a myriad of changes, including an increase in social programs and increased government involvement in the economy. One of the cornerstones of FDR's New Deal program was to provide direct aid to those immediately affected by the economy. Through the NEW Deal, FDr participated in deficit spending and created many social programs that still exist today. He also passed numerous laws reforming banking practices and agricultural prices. In conclusion, the Great Depression had a profound effect on American society as a whole. This stunted the way Americans viewed money, caused mass unemployment and poverty. But ultimately it caused the government to address underlying issues such as agriculture, banking and welfare..