A major economic crisis in the United States started in 1929, and several factors caused it. Although the market crash was a significant event, its precursors were influential in starting the difficult period. In the 1920s, Americans began spending more, contributing to the economy (Field & Kim, 2022). At the same time, the stock market started growing and attracting people who purchased stocks at a small price margin. The lack of regulations and people’s introduction to the stock market system has led to price inflation and the eventual crash.
Moreover, the government also made decisions that contributed to the problem. When the banks collapsed during the crash, the central bank did not create supportive programs, which led to smaller banks’ closure (Field & Kim, 2022). High-interest rates resulted in a low money supply, leading to deflation and even higher investment barriers. President Hoover also did not immediately provide any relief to those affected by the crisis, postponing a response to a time when the economy was fragile.
Analyzing the previous government’s strategy, President Roosevelt introduced the New Deal, which focused on helping Americans recover from the Great Depression. The New Deal incorporated several solutions based on government control and intervention in the country’s economy. First, the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) were established (Faber, 2020). These programs helped the unemployed with financial aid and new jobs. Most jobs were temporary, but they allowed people to raise their household income and increase spending, which poured the money back into the economy.
Second, the National Recovery Administration (NRA) created new labor and trade practices regulations. This measure led to changes in government legislation concerning child labor, trade restrictions, and working conditions (Faber, 2020). The new laws were a way to secure Americans’ future with pensions, the ability to unionize, and other benefits. Third, the government passed new bills to provide security to those who invested money or made bank deposits (Faber, 2020). Trading practices partially caused the crisis, and the new legislation prohibited banks from participating in high-risk schemes.
The end of World War II was marked by tensions between the Soviet Union and the US. The arms race – the process of acquiring armaments to increase political status – contributed to it. In 1946, Truman proposed the Baruch Plan, prohibiting the Soviet Union’s nuclear project advancement while allowing the US to continue development (Office of the Historian, 2022). Stalin disagreed with following this strategy and continued nuclear projects; the US responded with its atomic weaponry production, resulting in an arms race.
The differing ideologies also strengthened mistrust – the US firmly believed in global capitalism. At the same time, the Soviet Union wanted to spread communism to other countries. These systems had opposing views on economics and politics, leading to disagreements over political influences and trade relations (Shuman & Harvey, 2019). As an outcome, the tensions of the Cold War have led the nations to antagonize one another through propaganda. Domestic policy in the National Security Act demonstrates increasing safety concerns. The US’ cultural shift was influenced by propaganda and marked by anti-communist messaging and patriotic ideology.
Another major event that changed the course of American history was the civil rights movement. The activists who formed the movement protested a major historical issue in the US – the oppression of Black Americans and the long history of inequality that grew from slavery in the country (Reed, 2019). One of the significant outcomes of the movement’s activism was the signing of the Civil Rights Act in 1964 (Reed, 2019). This new legislation officially banned segregation and discrimination, making all public places available to Black Americans.
Another notable change in legislation was the Voting Rights Act. The law gave African-Americans the right to vote and prohibited discrimination in voting places and practices (Reed, 2019). Voting rights allowed Black Americans to participate in politics and advocate for their interests. While the two major legislations did not completely solve the problems of racism in the country, they provided a legislative foundation for cultural and economic shifts.
References
Faber, J. W. (2020). We built this: Consequences of New Deal era intervention in America’s racial geography. American Sociological Review, 85(5), 739-775.
Field, A., & Kim, P. (2022). 7 causes of the Great Depression, and how the road to recovery transformed the US economy. Business Insider. Web.
Office of the Historian. (2022). The Acheson-Lilienthal & Baruch Plans, 1946. Web.
Reed, T. V. (2019). The art of protest: Culture and activism from the Civil Rights Movement to the present. University of Minnesota Press.
Shuman, M., & Harvey, H. (2019). Security without war: A post-Cold War foreign policy. Routledge.