Today, the United States of America is the most developed 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 U.S. history is the so-called Great Depression, which was caused by a sharp economic crisis and severe inflation in 1929, when hundreds of large enterprises stopped working in one day and several dozen banks instantly turned into bankrupt. What is the reason for this sudden crisis, for many, it remains a mystery, because, despite the studies of leading economists in the world, much is still treated ambiguously.
So, in the 20s of the last century, the economic system of America developed quite intensively, which was caused by the scientific and technological revolution that occurred at the end of the 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 main of which was the development of industry, the electrification of the country, construction, as well as the expansion of private farms. Strange as it may seem, over the years of the First World War, the US economy has strengthened 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 success it seemed, tension was gradually growing inside the country, and the Great Depression clearly showed that everything was as safe as it seemed at the very beginning. The fact is that most of the financial capital was concentrated in the hands of large 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 leading industrial trusts, which were gradually becoming more and more powerful. For this reason, the increase in turnover by large companies showed intensive economic growth, which, however, had little effect on the growth of the well-being of American families. The national average income did not exceed the cost of living. That is why October 24, 1929 there was a landslide drop in stock prices, which led to the collapse of the American economy. The government of President Hoover could not do anything, so Franklin Roosevelt was elected president in the next presidential election in 1932.
The Great Depression in America seriously damaged the reputation of the US economic power, 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, proclaiming the so-called “new course”, which not only brought the economy of their crisis over the course of several years, but also gave a powerful impetus to the economic development of everything 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 of the national currency and support the country's leading enterprises. A new law on the allocation of the State loan was adopted, which provided significant assistance in restoring the country's economy. The next stage, as a result of which the Great Depression was overcome, was the support of trade unions and the vesting of their emergency powers. Thanks to this, US citizens felt more secure, and the country began to systematically emerge from the crisis.
Summing up the historical crisis, it should be emphasized that, despite all the negative points, this was the impetus for a new economic development, since such a “shake-up” was the beginning of a new era of economic prosperity in the United States. As a result, the Great Depression of 1929 was successfully overcome.