A shoes factory for example produces 1,000 pairs of sexy red shoes. When every lady get the style of sexy red shoes, the market needs will be dropped. But the factory keeps producing 1,000 pairs of sexy red shoes every day. The unsold ones will be stored in the factory. So, the factory owners will produce less, and more laid off workers will be followed as a result. Because the workers lost jobs, they would not be able to afford a pair of new shoes. And the factory owners produce less. And it becomes a bad cycle. The economic depression is a natural cycle that the European countries had experience of it earlier than the Americans. Kegnesis economy was a solution.
Roosevelt had been in European shortly before he wined the election in 1932, but Roosevelt did not believe a direct giving out money to the unemployed was a solution. In the late 1920s, Hoover lavished table to say there was no one suffered from hungry, but later it became a bitter joke when the stock market crushed in 1929, on October 29, the black Thursday.
People dig pigs and called them Hoover's dens or Roosevelt's dens. Humbles, Tumbles, riding rails. Young people catch the trains by hitch hick. Brothers and sisters wanted to help brothers and sisters out, traveling a long distance to find jobs. In the countryside, three or four black farmers crowed in a small space. When the price of crops dropped, the farm owners had to sell lands to pay off the debts; and often, the farm owners became the farm workers themselves. The black farm workers ,who lost jobs, became drunken and using violence at home. Women who went to work increased from 45% to 60%. The birthrate dropped, marriage rate dropped; and the divorce rate dropped because poor cannot afford to divorce. In urban areas, people bagging food in the allies, finding food from the trash cans. People stand in line waiting for government's hand out till there is nothing more to hand out. According to Children's Beauacracy, in average, one out of five children have not the sufficient to eat.
In California, since 1925, increasing immigrants came to California from national and international. Upton Sinclair's End the Prosperity in California almost gained his election in 1935. With increasing immigrants to California, less and less jobs were available in Los Angeles. The LA Time referred the city LA as a place of urban hell. Under the Emergency Relief Appropriation Act, Roosevelt created WPA and PWA to help people to find the job. But, in California, in order to protect the rights of the Californians the state governor required the applicants to have a three-years residency for the relief programs. The despaired immigrants often had to work in the fields with very low wages paid if by fortune they were employeed. And often, the immigrants cannot find the jobs in California and had to camping by the freeway bagging food for survival. The insufficient of the New Deal Programs was therefore proved. In another word, the Kegnesis Economic is a necessary political policy for running business in Capitalism. But it did not come to effect till 1935 when the Social Security Act was effect.