The stock market crash of October 1929 was effectively the beginning
of a very new and important era for the United States and for the world.
The global economic recession that followed was most strongly felt in
the United States. By 1932, US industrial output fell 54% and there was
25-30% unemployment. This was partially the result of lack of confidence
in the economic and financial institutions of the country. This lack of
consumer confidence led to a downward spiral as fewer factory orders
were placed and more and more jobs were lost. The Great Depression was a
period of introspection and reevaluation for the United States. Due to the strong economic and political ties to the United
States after WWI, the European industrial economies also suffered severe
problems. It can be argued strongly that the rise of Adolf Hitler was
only possible because of the very bleak economic landscape of Germany in
the early 1930's. Hitler used rearmament of Germany as a driving force
to restart the German economy and by 1936 the economic depression in
Germany was effectively over.The situation was more severe in the United States and a very
great contributor to the problem was the great drought that created the
"Dust Bowl" that extended over a large region of the Great Plains.
This forced many agricultural families from their homes and created an
even more depressed outlook for the American people. The devastating
effects of the Depression were to last until the US joined WWII in 1941.
In 1932, Franklin Delano Roosevelt was elected president and he
drastically changed the course of US economics and politics by
introducing strong government regulation and a package of massive public
works projects called the "New Deal". These were meant to re-employ
Americans and to build a more modern infrastructure. The previous
government policies of
laser faire (leaving things as they are or simply leaving things to
market forces) were replaced by much more government control and
intervention.
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Andrea,
ReplyDeleteI don't feel that you really talked a whole lot about the New Deal. You wrote the history that lead to the New Deal but stopped before really writing about it. I also took off for sentence structure and capitalization. (yay! Should be capitalized because it is a sentence by itself.)
Word count: 415 words
Score 19/25
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