USA and the world economic crisis of 1929

After the First World War of 1914-1918. The United States is finally taking a leading position in the global economy. While a ruined Europe licked its wounds and restored the economy, America, which did not conduct military operations on its territory, became a global creditor and financial benefactor. All this was illustrated by the rapid growth of industrial production, the expansion of capital, the increase in exported products. This situation for the government, business circles, and ordinary citizens of the United States created the illusion of an endless flow of benefits that can be enjoyed indefinitely.

The first callsign of the world economic crisis of 1929 was given at the end of October 1929, when the rate of overvalued shares collapsed. About twenty-five million Americans suffered from it, banking structures took a heavy blow . This event was the starting point of the Great Depression that swept the whole world.

The global economic crisis of 1929 was in fact a crisis of overproduction, which, as is known, has a certain cyclicality. Due to the fact that the produced commodity mass exceeded demand, a crisis arose in many enterprises, which, in turn, drew the crisis of large and small banks. Violation of the process of natural economic laws led to the destruction of entire countries, but most of all the world crisis of 1929 struck America. This threw the country back twenty years ago, when prosperity was not yet dreamed of.

It is worth noting that the global economic crisis of 1929-1933 significantly affected not only the economy, but also the ideology of the entire American nation. Individualism, which was propagated for centuries, was now forced to admit its failure. An immediate intervention of the state in the business of private structures was required, which in America has never happened before.

In his pedantry and stubbornness, President Hoover was absolutely confident that the country would automatically exit the crisis - so strong was the belief in the American economy. However, the years of the crisis proved that it only gets worse. Strikes and demonstrations began in the country, a credit organization was created that supported banks, industrialists and transport workers, and a special bureau was created for farmers. All enterprises in inertia continued to support production, although in reality the problem was the low demand of the population for manufactured products. Unfortunately, the work of these structures was not so successful as to quickly lead the country out of the crisis.

The world economic crisis of 1929 was growing. Herbert Hoover's cadence was coming to an end. It is time for change and decisive action. In the elections of 1933 in America, Democrat Franklin Roosevelt wins, who held the so-called "new course", which largely pulled the country out of the crisis. It was the only president who was elected more than twice in a row, he led the country in the most difficult times for the world - during the years of depression and World War II.

America Roosevelt took in a deplorable state. The population lost faith in the American currency, the threat of a money crisis was growing, as dollars were massively disposed of when buying gold. The number of unemployed was a record high - about fifteen million did not have any social support at all.

The main essence of Roosevelt's course is government intervention in the economy. Now the business position was not only commercial structures, but also the state itself, which became the main regulator of relations between entrepreneurs, banks, trade unions. The measures that were taken were to some extent not popular among the population and entrepreneurs, however, the rigidity of this policy's exposure led to positive changes. As a result of the "new course", the world economic crisis of 1929 began to recede, but the policy of state regulation continued until Roosevelt's death in 1945. This gave a powerful impetus to the country for a long economic resuscitation, thanks to which, and now America holds the first positions in the world market.