The Great Depression of the early 1930s in the USA

Today the United States of America is the most developed country 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 most sad pages in the history of the United States is the so-called Great Depression, which was caused by a sharp economic crisis and strong inflation in 1929, when hundreds of large enterprises ceased operations on one day, and several dozen banks instantly turned into bankrupts. What is the reason for such a sudden crisis, for many so far remains a mystery, because, despite the research of leading economists in the world, much is still being interpreted ambiguously.

So, in the 20s of the last century the American economic system developed quite intensively, which was caused by the scientific and technological revolution that occurred in the late 19th century. The growth rate was so intense that it even overtook many European countries in its development. This was facilitated by several key factors, the most important of which was the development of industry, electrification of the country, construction, and expansion of private farms. Strange as it may seem, during the years of the First World War, the US economy was strengthened quite well, as the intensive export of weapons, medicines and various household goods to Europe contributed to the enrichment of the transatlantic power.

However, despite the seeming success, the tension inside 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 big tycoons, such as Rockefeller, Morgan, Hill, Carnegie and others. As a result, it became increasingly difficult for small and medium-sized businesses to compete with the leading industrial trusts, which gradually became more and more powerful. For this reason, the increase in turnover of large companies showed intense economic growth, which, however, had little effect on the welfare of American families. On average, the income did not exceed the subsistence minimum. That is why on October 24, 1929, there was a dramatic fall in the prices of shares, which led to the collapse of the American economy. The government of President Hoover could not do anything, so at the next presidential election in 1932, Franklin Roosevelt was elected president.

The great depression in America seriously undermined the reputation of the US economic power, so investments in its economy fell sharply. Hundreds of thousands of people were on the street, as the enterprises closed, and the unemployment rate 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, proclaiming 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 all State. Thanks to this, the Great Depression is gone, and never returned. The essence of the "new course" was to take tough measures to contain the fall of the national currency and support the country's leading enterprises. A new law was passed on the allocation of the State loan, which provided significant assistance in restoring the country's economy. The next stage, due to which the Great Depression was overcome, was the support of trade unions and the granting of their extraordinary powers. Thanks to this, US citizens felt more protected, and the country began to systematically come out of the crisis.

Summing up the historical crisis, it should be emphasized that, despite all the negative aspects, this was the impetus for a new economic development, since such a "shake-up" marked the beginning of a new era of economic prosperity for the United States. As a result, the Great Depression of 1929 was successfully overcome.