The Reasons Behind Roosevelt's New DealFranklin Delano Roosevelt came to power in America in 1932. At the time, the American economy collapsed and states -United States had entered a long depression. The main reason for the depression was the Wall Street crash, which affected every aspect of American life. The worst problem was unemployment in 1932; at least 12 million citizens were out of work. Since there were no unemployment benefits, people had to queue for soup and bread, sometimes as many as 10,000 people long. Additionally, fewer people were buying clothing, resulting in 120,000 of the New England state's 280,000 garment workers losing their jobs. Companies were overproducing and people couldn't afford the products; businesses then went bankrupt, leading to a vicious cycle. These problems have led people to lose faith and especially trust. Mortgages and rent payments couldn't be met, so people moved to "Hoovervilles." These were “slums,” nicknamed in honor of Herbert Hoover, who was president at the time of the Wall Street Crash. Even people who owned expensive cars etc. previously had nothing, some were even unable to afford a bus ticket. People with jobs and profitable businesses even lost ground because 5,000 banks failed and the financial system virtually collapsed. Farmers suffered greatly, thousands of people. families who farmed had to sell their farms because it became unprofitable to grow crops. Millions of farmers have moved to big cities in search of work. The value of U.S. foreign trade fell from $9 billion to $3 billion as other countries retaliated against U.S. tariffs. For example, cigar union shares fell from $113 each to just $4 apiece. People blamed the Depression on Hoover because he and the government believed in "Laisser-Faire", which meant that the government stood aside, did not intervene and let the economy and businesses, etc., operate without government assistance.