American History

The social, political and economic crisis that might affect one country during a certain period of time has a direct impact on her neighbors and her business associates. The Great Depression that affected America after the end of World War I had such a negative impact not only on the American citizens but also most countries in the world.

This paper seeks to address the state of Americas economy during and after the World War I. It will deal the how the various (social, economical and political) sectors, manufacturing and production industries were affected during and after the World War I. The paper will also look at the various effects of the Great Depression and the impact that the Wall Street crash had on the economy of the nation and the world at large. In addition, the paper will look at the economic, political and social consequences of the New Deal Policies that were adapted. The similarities between the Wall Street crash and the current economic crisis will also be looked at.

The social, political and economic events that occurred during and after the World War I had different consequences on the growth and development of the nation during that period. Unfortunately, it is these events that led to the Great Depression, the Wall Street crash and the collapse of the economy.

Social, Political and Economic Events during the World War I
The social, political and economic setting of America greatly changed during the war. On an economic front, it is during the war that the production and manufacturing industry of the nation thrived, especially the war industries. The manufacturers were under pressure to increase their rate of production in order to keep up with the war (McCrae, 2006). This urgency and demand from the government helped in invention of new and advanced machines and equipment that could keep up with the production. This was a good sign and achievement for the production industry. The socioeconomic impact according to McCrae (2006) is that the effects of the recession that affected the nation in 1897 were soon forgotten as there was demand for more labor and more employment opportunities were created. As a result more youths who were initially jobless were recruited as labors in different factories. On a positive note also, the number of employed African  American also increased. This was because most men had been called to fight in the war and therefore there was need for more manpower.

It is during the war that there was an increase of the rural urban migration especially by AfricanAmericans who went to look for employment opportunities. Politically, the growth in the number of employed women led to the rise of women movements, and they pushed for universal suffrage (right to vote) (McCrae, 2006). However, this did not come to pass as the male politicians crushed the idea. For the first time after the 1897 recession, the economy of America was on the road to recovery and stability. The unemployment rate dropped drastically and the manufacturing and production sectors prospered.

Social, Political and Economic Events after the World War I
The effects of the World War I had varied effects on the economy of America. This period which was known as the roaring twenties, signified the beginning of the rise and down fall of the US economy.
According to Keuchel and OSullivan (1989), the census of 1920 indicated that during the war there had been a massive ruralurban migration and therefore most Americans lived in urban centers. As a result of this and the World War I, the economic activities changed from rural agrarian to urban industrialization (Keuchel  OSullivan 1989). A number of sector were affected by the WWI, some of them include

Agriculture sector after WWI The agriculture sector was greatly affected by this since the number of farmers dropped to only  of the countrys work force. The prices of farm produce during this period also declined and the future of farmers looked bleak. This did not stop, as the net income generated by farmers dropped from 9.1 billion in 1919 to 7.8 billion in 1920 and further 3.4 billion in 1921. This was a great crush to the farmers who had invested heavily in farm machinery and equipment between 1915 and 1919 (Keuchel  OSullivan 1989).

Stock Market after the WWI The performance of the Stock Market after the WWI was something that left many non-American investors filled with envy. Keuchel and OSullivan (1989) have observed that at the beginning of the early 1920s, the stock market showed signs of success but it was not until the late 1924 that the markets flourished. Between the 1924 and 1929, it is estimated that the New York Stock Exchange recorded a 400 growth, and the DowJones industries also performed well during this period. They recorded an average of 120.5 growth in 1924 and this increased up to 381 in 1929 (Keuchel  OSullivan 1989). The increase in the volume of brokers loans was the reason that propelled the fast growth of the stock markets.

After the war, many soldiers who had been sent to the battling fields returned home. Most factories closed down because the rate of production had dropped and most employees were laid off and the economy that was once thriving started to gradually slow down (McCrae, 2006). This was a strong signal of a looming economic depression.

Effects of the World War I
The effects of the World War I were both positive and negative. There were the positive effects in terms of job creation, economic growth and the change from a rural agrarian economy to urban industrialization. The performance of the stock markets after the war was also and good sign of economic prosperity and growth. However, October 1929 changed all this (McRae, 2006  OSullivan et al, 1989).

The Wall Street Collapse
The collapse of the Wall Street caught many investors and the general population unawares. Shares of companies like General Motors dropped from 73 to 8 a share and Montgomery Wards from 138 to  4 (McRae, 2006  OSullivan et al, 1989).

The effects of the Great Depression that lasted for more than five years as highlighted by Trueman (2000) were
More than 12 million people were rendered jobless this was at average of 12,000 people losing jobs daily.
20, 000 companies were declared bankrupt.
1,500 banks filed for bankruptcy.

More than 23,000 American committed suicide in a year this was the highest ever case of suicide recorded in American history.

The government of the day did not help much the president of the day was quoted as saying
It is not the function of the government to relieve individuals of their responsibilities to their neighbors, or to relieve private institutions of their responsibilities to the public(Keuchel  OSullivan, 1989).

The collapse of the Wall Street had severe effects on the Americans. Suicides and starvations were the order of the day since most of them lost millions of dollars worth of investments.
The New Deal economic recovery plan was adapted in 1933 under President Roosevelt. The deal minimized competition in market products but instead increased the strength of labor bargaining, however many analysts criticized this plan and blamed it for the slow growth and economic recovery (Keuchel  OSullivan 1989).The New Deal recovery plan incorporated the National Industrial Recovery Act (NIRA), in its recovery strategy.

The causes of the Great Depression during the transformative twenties are the same as the causes of the economic crisis that affected America and the rest of the world from 2008 (Cox 2008). Excessive  reckless lending by banks and other financial institutions to would be investors was the reason for the occurrence of the economic crisis in 2008.  This reckless lending enabled most investors to buy homes and properties whose prices were abnormal. It is the failure by the investors that most financial institution experienced losses and as a result the crisis. The crisis led to an increase in the unemployment rate and lay off of workers by many companies many companies and organizations had to partially close down because they could not keep up with the rising cost of living at that time (Cox, 2008).

One notable similarity between these two events is that before the recession occurred, the performance of the financial institutions and banks was above average and there was an easy availability of loan facilities.

Conclusion
The Transformative Twenties period is a period that will forever remain in the history books of the Americans. It is during this period that the economy of the nation flourished and after some time the nation went to a Great Depression.

This paper has critically analyzed the impact of the World War I to the economy of America and the world in general. It has looked at the effects during and after the war and the Great Depression. It is therefore safe to conclude that the social, political and economic effects of the World War I can still be felt by the current regimes. This can be witnessed in the economic meltdowns and the increase in the rate of unemployment that is being witnessed.