The Greatest Depression in the US was a sudden social and economic shock to the entire country. It has given rise to an entirely new level of poverty, crime, unemployment and other similar derivatives of social tension. The state and society turned out to be extremely unprepared for such a comprehensive crisis due to the fact that the previous period since 1923 was an extremely prosperous stage of rapid economic growth and prosperity.
Causes of the Great Depression 1929-1933
This rapid and seemingly cloudless growth began to slow down already in 1929. In August, across the US began to decline little by little the main indicators of production. But then the economic slowdown that began did not receive significant attention. It is believed that the greatest depression in all the years of the existence of the United States began with the stock market crash on October 24 of that year. On this day, the shares of all stock exchanges began to fall catastrophically: first on the domestic market, and then on the foreign market. This day was later called by the Americans "Black Thursday". In the reasons for these events, economistslater identified a number of cumulative causes: among them and excessive production of goods - overproduction and surplus, as a consequence; investments in some industries beyond the need (the emergence of the so-called bubble); a sharp increase in the population, which led to a shortage of money supply.
Difficult years
Great Depression 1929-1933 covered all spheres of public and state life, it brought a catastrophic fall to the economy of the state. Heavy industry, construction, agriculture and a number of other industries were almost completely stopped. The widespread drop in production results and decline was also accompanied by mass layoffs, which at the height of the crisis reached tens of thousands every week. In 1932, a quarter of the able-bodied citizens across the country lost their jobs. The greatest depression, of course, was accompanied by the fall of the social guarantees of the state. The decline in demand for the products of farmers led to the massive ruin of this category: by 1932, there were already more than a million ruined farms.
New Deal
The government of Herbert Hoover could not cope with a comprehensive decline in the economy, production and social standards. In 1932, Franklin Delano Roosevelt was elected president, who proposed a set of measures to
overcoming the crisis. In essence, Roosevelt's New Deal policy included a number ofmeasures that were associated with a certain departure from the positions of liberalism and a tangible strengthening of the state's role in production and the economy. The government announced support for farms, measures to stabilize the financial system, the provision of social guarantees to workers, financing of the agricultural industry, some antitrust actions in order to revive competition and accelerate the economy, tightening the procedure for obtaining state loans by banks, as a result of which only the most viable remained afloat.. The greatest depression in the history of the country gradually began to decline. However, its consequences reminded of themselves until the beginning of World War II.
