Today, the United States of America is the mostdeveloped state in the world, which not only has a strong economic system, but, in fact, sets the direction in the development of culture and society. However, this was not always the case, and the path to economic power in this country was quite difficult.
One of the saddest pages in US historyis the so-called Great Depression, which was caused by a sharp economic crisis and strong inflation in 1929, when hundreds of large enterprises stopped their operations in one day, and several dozen banks instantly turned into bankrupts. What is the reason for such a sudden crisis for many is still a mystery, because, despite the studies of leading economists of the world, much is still interpreted ambiguously.
So, in the 20s of the last century, the economicAmerica's system was developing quite intensively, which was caused by the scientific and technological revolution that occurred in the late 19th century. The growth rates were so intense that it even overtook many European countries in its development. This was facilitated by several key factors, the main of which was the development of industry, the electrification of the country, construction, and the expansion of private farms. Strange as it may seem, but during the years of the First World War, the US economy grew quite well, since the intensive export of arms, medicines and various household goods to Europe contributed to the enrichment of the overseas power.
However, despite the seeming success, insideThe tension in the country gradually increased, and the Great Depression clearly showed that everything was as good as it seemed at the very beginning. The fact is that most of the financial capital was concentrated in the hands of large magnates, such as Rockefeller, Morgan, Hill, Carnegie and others. As a result, small and medium businesses found it increasingly difficult to compete with leading industrial trusts, which gradually became more and more powerful. For this reason, the increase in commodity turnover by large companies showed an intensive economic growth, which, however, had little effect on the growth of the welfare of American families. On average, the country's income did not exceed the subsistence minimum. That is why October 24, 1929 there was a collapse in stock prices, which led to the collapse of the American economy. The government of President Hoover could do nothing, so for the next presidential election in 1932, Franklin Roosevelt was elected president.
The Great Depression in America has seriously underminedThe reputation of the economic power of the United States, so investment in its economy plummeted. Hundreds of thousands of people were on the street as businesses closed, and unemployment rose sharply. The situation was extremely difficult, and it was in this difficult situation that the new president and his team chose the right path, declaring the so-called “new course”, which not only for several years brought the economy of their crisis, but also gave a powerful impetus to the economic development of the state. Thanks to this, the Great Depression is a thing of the past, and never returned. The essence of the “new course” was to take tough measures to curb the fall in the national currency and support the country's leading enterprises. A new law was adopted on the allocation of the State loan, which provided significant assistance in rebuilding the country's economy. The next stage, due to which the Great Depression was overcome, was the support of trade unions and endowing them with extraordinary powers. Thanks to this, the citizens of the United States felt more secure, and the country began to gradually get out of the crisis.
Summing up the historical crisis, shouldto emphasize that, despite all the negative aspects, this was the impetus for a new economic development, since such a “shake-up” was the beginning of a new era of economic prosperity for the United States. As a result, the Great Depression of 1929 was successfully overcome.
