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.