first you need to understand what caused it.
Rapid expansion in business and buying on credit with no backing. Including in the stock market caused a non valued economic condition, base on no real money. The farms in the Midwest where having crop problems due to the drought and many farms when bankrupt. This tighten (some) food supplies.
OK so everyone was running on empty and even though the dollar was backed by gold, the credit extended was not. Hence a crash occurred and market crashed and people lost jobs because factories closed etc.
OK the weather changed and the farms SLOWLY came back into production. The Gov started the WPA (work projects of America) people where given jobs to build things, bridges, public parkas , pools, dams, canals etc. They got paid crap but they had jobs and sent money back home. (from the work camps) Meanwhile (some people still had money) new business appeared and factories slowly started to hire people again. The fed cracked down on overextended credit and set up all kinds of regulations.
The economic conditions slowly improved and by the time the war started the gov. was in a position to open factories for weapon production and enlisted more recruits for the military.
The process was a natural healing of the monetary system with a push by the gov. with in a capitalistic society at the time.
2007-11-20 15:32:09
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answer #1
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answered by Carl P 7
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It most certainly wasn't the social welfare policies of the Democrats in the White House at that time.
It was WWII which forced the U.S.A. to up military industrial production to defend us and our allies.
That created both jobs and scientific development.
It instilled in the American people the knowledge that we can accomplish almost anything when we set our minds and hearts to the accomplishment of the task.
2007-11-20 15:20:12
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answer #2
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answered by Philip H 7
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A better question would be what started the Great Depression. Voodoo economics, robber barons, unregulated capitalism, all the criminal bullshit Reagan reintroduced.
2007-11-20 15:23:54
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answer #3
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answered by Anonymous
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world war 2
2007-11-20 15:13:49
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answer #4
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answered by Mary Jo W 6
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