After the First World War, 1914-1918 The United States finally takes a leading position in the global economy. While a devastated Europe licked its wounds and rebuilt the economy, America, which did not wage war on its territory, became a global lender and financial benefactor. All this was illustrated by the rapid growth of industrial production, expansion of capital, increase in exported products. This situation for the government, and for business circles, and for ordinary citizens of the United States created the illusion of an endless stream of benefits that can be used forever.
The first call signs the world economic crisis of 1929 gave at the end of October 1929, when the rate of revalued stocks collapsed. About twenty-five million Americans suffered from it, banking structures took a strong blow . This event was the starting point of the Great Depression, which swept the whole world.
The world economic crisis of 1929 was essentially a crisis of overproduction, which, as you know, has a certain cyclical nature. Due to the fact that the produced mass of goods exceeded demand, a crisis arose at many enterprises, which, in turn, led to a crisis of large and small banks. Violation of the process of natural economic laws led to the ruin of entire countries, but most of all the global crisis of 1929 hit America. This threw the country twenty years ago when prosperity has not yet been dreamed of.
It is worth noting that the global economic crisis of 1929-1933 significantly hit not only the economy, but also the ideology of the entire American nation. The individualism that has been promoted for centuries has now been forced to admit its failure. Immediate government intervention was required in the business of private entities, which has never happened in America before.
In his pedantry and stubbornness, President Hoover was absolutely sure that the country would automatically come out of the crisis - so strong was the faith in the American economy. However, the years of crisis have proven that it only gets worse. Strikes and demonstrations began in the country, a credit organization was forced to support banks, industrialists and transport workers, and a special bureau was also created for farmers. All enterprises by inertia continued to support production, although in fact the problem was in 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 drawing to a close. It is time for change and decisive action. In the 1933 elections in America, Democrat Franklin Roosevelt was victorious, having pursued the so-called “new course,” which to a large extent pulled the country out of the crisis. This was the only president who was elected more than twice in a row, he led the country in the most difficult times for the whole world - during the Depression and World War II.
Roosevelt accepted America in a deplorable state. The population has lost faith in the American currency, the threat of a monetary crisis was growing, as dollars were massively disposed of by buying gold. The number of unemployed was record high - about fifteen million did not have any social support at all.
The main essence of Roosevelt's course is state intervention in the economy. Now, not only commercial structures, but the state itself, which became the main regulator of relations between entrepreneurs, banks, and trade unions, took up business positions. The measures that were taken were to some extent not popular with the population and entrepreneurs, however, the rigidity of endurance of this policy 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 the death of Roosevelt in 1945. This gave a powerful impetus to the country for long-term economic resuscitation, thanks to which America still holds the first position in the world market.