In its comparatively long history, humanity had passed through numerous crises that altered the world and resulted in the appearance of new entities, values, phenomena, etc. There were different causes for the appearance of hard times. Starting from the ice age and ending with the 2008 financial crisis, human beings had experienced several hardships that became extremely important for the formation of modern society and peoples mentality.
In other words, the crisis is an integral part of our evolution, and the search for the methods to overcome it and mitigate its negative aftermath is the way to become stronger and obtain a unique experience. For this reason, the 20th century and the Great Depression could be called great teachers that provided numerous lessons to people and shaped our world.
The Great Depression was one of the most significant worldwide economic crises that happened in the 1930s and lasted until 1941 (“The Great Depression,” n.d.). Specialists consider it the longest, deepest, and the most severe depression of the 20th century (Ferrara, 2013). The worlds economy was rolled away to the 1900s, and it took many years to recover. The USA was one of the countries that suffered from this crisis greatly. The Great Depression started in the USA after the stock market crash of October 29, 1929, known as Black Tuesday. In the next following years, the GDP fell by 15% (“The Great Depression,” n.d.).
It resulted in the outstanding rise of the unemployment rate which comprised up to 33% (“The Great Depression,” n.d.). Among other industries, the heavy one was affected most of all as it was mainly located in big cities that suffered from the Great Depression. Crop prices also fell by 60% (“The Great Depression,” n.d.). The combination of these facts contributed to the rise of poverty, hunger, and deterioration of the quality of life. Only after WWII, the USA managed to recover and improve the state of its economy.
There are numerous perspectives on how the USA managed to recover and restore its economic power. Some investigators are sure that consumer spending after the WWI ended the Great Depression and promoted the increased well-being (Ferrara, 2013). However, another perspective which states that rationing and military spending were the main factors to eliminate the crisis seems more appropriate. The fact is that the US economy before and after the war differs greatly. Several reasons could be used to explain this phenomenon.
One knows that the USA did not suffer from severe devastations or carpet bombings that were used by Germany to quell the resistance of the USSR and other countries. In general, the USA made war on other territories and managed to preserve its industrial potential and big cities. For this reason, its heavy industry became one of the most powerful in the world. Additionally. the need for armament, tanks, planes, ships, etc. provided the sphere with numerous orders that resulted in the revitalization of the economy and appearance of the first signs of recovery (Ferrara, 2013).
Finally, the USA became one of the main exporters of armaments supplying the UK, the USSR, and other states that fought a bloody war against Germany with numerous products. The lend-lease policy became a crucial aspect that contributed to the revitalization of the economy. In general, $50,1 billion ($667 billion today) was obtained due to the provision of equipment to different states (“Lend-lease Act,” n.d.). Analyzing these factors, it becomes obvious that they became the main forces that helped the USA to overcome the Great Depression. Numerous arms contracts were vital for the survival of the heavy industry.
It was in the deep stagnation before the war as the low buying capacity preconditioned the absence of the need for manufacturing different goods and a high unemployment rate. However, to produce armaments heavily, numerous workers were needed. It resulted in the recovery of the heavy industry, the decrease in the unemployment rate, and stable sources of income for many American households. People obtained money and were able to spend them stimulating other branches of industry and creating the ground for the elimination of the Great Depression aftermath. After the end of WWII, the USA did not have to spend giant sums to restore its industrial potential and rebuilt plants and factories. For this reason, it managed to preserve the high speed of its economic rise and become one of the most powerful states in the world.
Altogether, the Great Depression had a devastating impact on the US economy. The state experienced one of the most difficult periods in its history. The collapse of the heavy industry along with high unemployment rates resulted in the deterioration of the quality of life and numerous problems in the sphere of economy. However, WWII provided the US heavy industry with a new stimulus for its rise. Numerous arms contracts as well as the lend-lease policy contributed to the revitalization of the economy and increased the speed of its further evolution. In this regard, military spending could be considered the main tool that ended the Great Depression and promoted the development of the US industrial sector.
References
Ferrara, P. (2013, November 30). The Great Depression was ended by the end of World War II, not the start of it. Forbes.
Lend-lease Act. (n.d.)
The Great Depression. (n.d.)