Herbert Hoover assumed the presidency in 1928 full of optimism. In foreign policy, Hoover practiced a "Good Neighbor" policy with Latin American republics. On the domestic front, he assured Americans that as long as business thrived, the country would prosper.
Farmers, however, already faced a depression, and government relief proved ineffective. On Black Tuesday, October 29, 1929, the stock market crashed, touching off a business and economic decline from which the country did not recover for more than a decade. The Great Depression was caused not only by stock market speculation but also by the effects of World War I, the depressed condition of agriculture, and unwise government policies.
By the end of the 1920s, thousands of Americans were jobless, and many farmers lost their land. Hoover offered to help banks and businesses but opposed direct federal relief to the unemployed because he feared that government handouts would destroy Americans' initiative to work. The American economy hit rock bottom by the 1932 presidential election. Signs of instability and rebellion appeared everywhere. In the election, Democrat Franklin D. Roosevelt won the presidency by a wide margin.
