The Great Crash of 1929 was a watershed in American
history. The old philosophy of a self-regulating economy based on
natural economic laws, with a limited role of the government no
longer had any defenders. Depression dealt a fatal blow to the ideals
of liberalism, democracy and capitalism. Disillusioned, many turned
to communism. Many were attracted to fascist organizations especially
in Germany and Italy.
In America, Depression had a profound impact on
the values of average Americans. Blind faith in business and profits
was replaced by greater concern for human values and emotional security.