After World War I was over, Europe and America were left in shatters. Though the destruction was not to the same extent in both continents, the repercussions were strongly felt. The effects of the World War I led to a thriving American economy. However, after a decade of prosperity, many Americans, who had never been out of commissionemployment, were astounded when factories, stores, and mines closed down. These individuals were now living in poverty and enduring horrible conditions in America during the Great Depression era. Although the conditions in America during the Great Depression were appalling, President Roosevelt handled these problems effectively.
Following the end of World War I, America's economy was prosperous because they were supplying goods to Europe and were able to loan money to other nations. The concept of letting other countries borrow money from the United States was a rash decision because if theythe US's failure would mean that failed, the world economy would also be devastated as well.
Charles P. Kindleberger, an economist, stated,
The world economic system was unstable unless someone country stabilized it, as Britain had done in the nineteenth century and up to 1913. In 1929, the English couldn't and the United States wouldn't. When every country turned to protect its national private interest, the world public interest went down the drain, and with it the private interest of all. (An Explanation of the 1929 Depression)
In addition to the loans the United States lent, the stock market began to develop into an integral part in the world's economy. Although, many individuals believed in the United States economy and bought stocks because they believed in the United States economy, it was after 1929 that this began to change. There was more money being spent on speculating speculation rather than actual...