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The Great Depression is thought to have begun "Black Tuesday" w/the Wall Street Crash of October, 1929 and rapidly spread worldwide. The market crash marked the beginning of a decade of high unemployment (17 mln), poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement. Although its causes are still uncertain and controversial, the net effect was a sudden and general loss of confidence in the economic future. The usual explanations include numerous factors, especially high consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, the lack of high-growth new industries, and growing wealth inequality, all interacting to create a downward economic spiral of reduced spending, falling confidence, and lowered production.
Industries that suffered the most included construction, agriculture, shopping, mining, and logging as well as durable goods like automobiles that people postponed. The economy reached bottom in the winter of 1932-33; then came four years of very rapid growth until 1937, when the Recession of 1937 brought back 1934 levels of unemployment.
1932 – Franklin Roosevelt (democrat) elected Pres, introduced some measures – THE NEW DEAL. It was 1st attempt to introduce public sector (earlier economic life was controlled by private business). Industrial enterprises got subsidies, banks got government support, farmers got subsidies so as to be able to restrict production. Their extra-production was purchased by the Gov. Public works provided work for the unemployment (17 mln -> 8 mln). Many other measures were introduced by Roosevelt, all of them had the aim of stimulating business and providing employment. Moreover the New Deal included social and labour legislation (unemployment relief – пос по безраб, old age & disability pensions, collective bargaining (trade unions). Roosevelt became very popular, was the only amer.pres. who served 3 successive terms and was elected for the 4th but died in April, 1945. He also had enemies, esp.in big business circles. In attacking his policies they often called him a socialist which was not true, he was a liberal and played a progressive role in the American history. Under his administration diplomatic relations w/the Soviet Union were established (1933).
On December 1941, while German armies were freezing before Moscow, Japan suddenly pushed the US into the struggle by attacking the American naval base at Pearl Harbor, Hawaii. 4 days later Hitler declared war on the US. President Roosevelt called on Congress for immediate and massive expansion of the armed forces. 20 years of neglect and indifference, however, could not be overcome in a few days.
Helpless as American garrisons in the Pacific fell to the Japanese in the spring of 1942, military leaders in Washington worked feverishly to create a headquarters that could direct a distant war effort & to turn the fledgling ground and air units into viable, balanced fighting forces. In early 1942 the Joint Chiefs of Staff emerged as a committee of the nation's military leaders to advise the President and to coordinate strategy with the British. In March the War Department General Staff was reorganized and the Army divided into three major commands: the Air Forces, Ground Forces, and Service Forces. 37 Army divisions were in some state of training, but only one was fully trained, equipped, and deployable by January 1942. Army planners of the time estimated that victory would require an Army of nearly 9 million men, organized into 215 combat divisions, estimates that proved accurate regarding overall manpower but too ambitious for the 90 divisions that eventually were established and supported on far-flung battlefields.
American industry had to support the nation's Allies as well as its own military expansion. Britain needed large amounts of munitions and equipment; and lend-lease aid, including tens of thousands of trucks and other vehicles and equipment, played an important part in mechanizing the Soviet Army. Amphibious warfare required large numbers of landing craft and support vessels, yet to be built.
The first U.S. troops arrived in the British Isles in January 1942, but nearly a year passed before they went into action against the Axis. Meanwhile, air power provided virtually the only means for the Allies to strike at Germany. The Royal Air Force began its air offensive against Germany in May 1942, and on 4 July the first American crews participated in air raids against the Continent.
By the end of World War II, about 295,000 American men and women would be killed.
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