The U.S. moved from economic collapse to economic supremacy very drastically. In 1929 when the Great Depression began the U.S. was at its worst. Many lost jobs and some even committed suicide. The Stock Market Crash affected the people very greatly. It broke them down, but when the New Deal came intact it was a sense of relief for them. It gave them hope that things would get better. The mobilization for World War II placed them in economic supremacy because it brought out the best in the people and the U.S. economy.
The beginning of the Great Depression began when the stock market crashed. There were several reasons as to what caused the Great Depression and they were: imbalanced distribution of wealth; there was no middle class. There was over speculation in the stock market which wasn’t regulated. There was buying on credit which meant that when a person bought something they didn’t have the money to pay for it in the future when the bills came. There was increased manufacturing and agricultural outpu t, but income wasn’t to speed for the consumers to buy all that was produced and grown. Therefore, inventories increased and agricultural income stayed low. There were federal regulations on businesses. Banks were allowed to speculate in land and the stock market with little government rules, and high tariffs and war debts. Prior to the crash of the stock market, it had been a great and important source for funding industry. Things began to get very expensive and no one was buying anything. Lots of wages increased. Economists believed that the decline in international trade after 1930 made the depression worse, especially for countries that depended strongly on foreign trade. Most people blamed the Smoot-Hawley Tariff Act by reducing international trade and causing retalia tory tariffs in other countries. Foreign trade was a small part of economic activity in general in the United States. It was intense in a few... [continues]
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