The United States entered World War I on April 6, 1917. The United States maintained the status of neutrality, and President Woodrow Wilson attempted to be an intermediary between the warring parties. The countries of the Entente conducted mass purchases of the American raw materials for military industry, food and weapons, thus strongly promoted economic recovery of the USA. Military orders led to rapid growth of the American industry and construction of the powerful military navy. It is possible to assume that participation of the USA became some kind of preventive measure …show more content…
The deep economic and agrarian crises emerged in the US during 1920, the number of unemployed increased, and the wages were significantly reduced. Against the background of acute economic and social problems at the next election, the Republicans managed to get power. In 1921, the newly elected president Warren Harding cancelled the tax on excess profits of corporations that were imposed during the war and increased duties on imports of important industrial products to the United States. In January 1920 under the pressure of Harding 's administration, the Congress adopted Eighteenth Amendment to the United States Constitution, according to which, it was forbidden to produce and sell alcohol throughout the United States. This policy provoked the emergence of organized gangs of criminals, who controlled the entire illegal business of alcoholic beverages, drugs, and prostitution. In the south of the United States, the Ku Klux Klan controlled the entire areas and got a new coil of development. The racial segregation was widespread (“Overview of the 1920s”). Therefore, it provoked the emergence of black’s resistance movements. Moreover, widespread was the corruption among law enforcement agencies, in particular, near the president 's entourage, which included judges, ministers and other influential political figures. The president 's entourage compromised …show more content…
Explain how Franklin Roosevelt proposed to help the economy. Why was he able to make so many changes? What lasting impact did New Deal policies have on America?
In 1932, Franklin D. Roosevelt became the President of the United States. He began to pursue the economic policy of recovery from the crisis and further development of the national economy of the state. Roosevelt had his own vision of the reform of the existing economic order, in his decisions, he relied on the opinion of scientists and experts. Roosevelt managed to apply the best economic and political concepts of that time.
The theoretical basis of the economic policy of Franklin D. Roosevelt was the concept of J. M. Keyes about the need for state regulation of the economy and the specific instruments of state regulation. The thesis that the most important economic stimulus to stabilize the economy is the growth of aggregate demand, including government spending, was the cornerstone of all economic policies of Franklin D. Roosevelt. The concept of fiscal policy has been changed in conformity with this thesis. The government consciously decided to carry out deficit