President Hoover (1929 - 1933) announces that recession will be resolved and jobs will be restored in 60 days. The market recovered, but then it collapsed again, only recovering by small amounts and failing by even more.
Reasons the market collapsed in the first place:
Overproduction- As World War I was occurring, American businesses prospered by manufacturing arms for the Allies and eventually themselves. Production went into overdrive, and the end of the war resulted in a large surplus of goods that couldn't be sold. Hence, factories and businesses had to cut back on production, lower prices, and lay off workers.
Disorder in foreign countries- In an ever-expanding global economy, the economic stability of foreign nations greatly impacts that of our own. Destroyed infrastructure, massive debts, and loss of a large part of the workforce resulted in an economic recession in Europe only worsened by the collapse of the stock market in America
The nature of the market- With fiat money, currency is worth as much as the people believe in it. Hence, confidence is necessary for a prosperous economy. When confidence decreased with each closed business or collapsed bank, the process only sped up and worsened the situation.
American lifestyle and trends during the early 1930s:
American fashion trends turned to formality. For example, women's attire was longer than that of the 1920s. Dresses were a few feet longer, past knee height, and skirted the ground in the evening.
Radio continued to be extremely popular
The fads of the 20s subsided. Records in aviation and exploration hardly made news. Flagpole sitting became a thing of the past.
Public opinion turned away from the laissez-faire ideals of Calvin Coolidge's administration.