U.S.A. : The Great Boom and the Crash

  • One of the challenges faced by American economy was the Great Depression of 1929.
  • American President, Woodrow Wilson lost his charisma and glory after the Paris Peace Conference.
  • He failed to convince the American Senate to allow US to be a part of the League of Nations.
  • He was succeeded by Warren G. Harding, a Republican.
  • Republicans demanded for isolation and a policy of laissez faire.
  • Herbert Hoover, a Republican became the American President in 1929.
  • American economy boomed. USA became the financier, the banker of the World.
  • The Great Boom caused the flourishing of American industries.
  • Women’s emancipation movement changed American life.
  • American market shrunk due to self-sufficiency of Britain, France and other countries.
  • US weapon industry became dull after the WW I.
  • Marxist writers blamed overproduction in industry as the cause of the ‘big crash’.
  • The Great Crash caused the rise of crimes in USA.
  • Millions of people became unemployed.
  • Banks and Wall Street collapsed by the end of 1932.
  • The emergency Relief and Reconstructions Act was passed to provide federal loan to state government.
  • Federal public works were boosted up to provide employment to unemployed.
  • Franklin D. Roosevelt, a Democrat became US President.
  • He closed all banks and forbade withdrawal of gold and silverA Federal Bank was opened to control private banks.
  • He set up the Public Works Administration to supervise construction of heavy industries.
  • Roosevelt set up National Recovery Administration to end the competition.
  • Industries got “Blue Eagle” badge to support the New Deal.
  • National Industrial Recovery Act was declared unconstitutional by the Supreme Court of America.
  • Roosevelt started the Tennessee Valley Authority to build dams across the river to promote irrigation, supply electricity and to prevent flood.
  • He passed the Social Security Act in 1935 for the welfare of people.
  • ‘The New Deal’ ended ‘the Economic Depression’ and restored prosperity.

 

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