American Great Depression

"American Great Depression"

As
Crisis of Capitalism or Collapse of Collapse

Abstract
This article argues about concept of "Great Depression" in the united state in 1920s. And directly refers to stock market economic crash in Roaring Twenties. So describes FDR's New Deal. Finally be concludes that Great Depression in the US only was a crisis in capitalism

Key Word: great depression, new deal, stock market, great crash, capitalism, crisis

Introduction
The world today, is so much complicated, that delicate and historical investigation is needed in order to understand the existing structures, suggest solutions and regard the problems.
The economic history of the world is full of instances that influence today's economic conditions greatly.
Globalization is one of the concepts arising from economy, penetrating in to all aspects of human life.
" a concept more than a mere concept " and overshadowing all sciences.
Needless to say, this concept has highlighted by American theorists .also birth of the concept of globalization is the biggest challenge in three fields of technology, economy and social. This astonished all in the world as did the luxurious cars companies of Henry Ford and the discovery electricity by Edison.
All of the this events happened in the bed of the country that named United States of America
The goal of this article is investigation to situation of American economic system. A system that named Capitalism.
It is of advantage to have definition of capitalism:
Capitalism is a system of production and trade based on the private ownership of wealth, free buying and selling, and little industrial activity by the government.
This concept allocates himself the biggest mental challenges and has dressed up the world in two wings, capitalism vs. communism.
Where ever hear of capitalism, there will arise the theoretical attempts of long hours library man in our minds. A theorist that heard shout of his words a half of people in the world and attracted attention against development of capitalism. He is the biggest theorist in this field.
The focus point of this article is concept of "Great Depression" that happened in American society in 1920s. in this article writer will decide with focus upon the American historical event argues about capitalism in this society and answers this question:
Did the Great Depression in the US represent a "crisis of capitalism" or the "collapse of capitalism"?
And so is offered the definition of Great Depression, in continue is remembered the causes and effects of this event, so is described the causes of other Great Depressions in American history.
Ultimately and after the gathering arguments is answered early question

Main causes of the Great Depression

There was some of Depression in American history but noting compared to the economic collapse of the late 1929.
"This Great Depression was the worst economic slump ever in US history and one which spread to virtually the entire industrialized word" ( http://www.english.uivcedu/ )
it was the more shocking because happened after the enjoying and economic welfare Age.
The Great Depression affected all areas of American life (Nash, 706) and damaged American confidence for some of the time.
There were many reasons to happen the Great Depression:
“1- unequal distribution of wealth
2- high Tariffs and war debts
3- order production in industry and agriculture
4- stock market crash and Financial panic”(www.english.uiue.edu )
For example general electric stock, selling for $ 394 in 1929 fell to $ 34 in 1932. Constriction spending fell to one-six of the 1929 level (Nash, 707) in 1929-starting of crash- national income was $ 88 billion. By 1933, it became $ 40 billion. And the Great Depression deeply affected the American family. Many of young people postponed their marriages, and about children, I should say that their parents couldn't provide enough food t eat and these children often were hungry and sick.
Unemployment
“In 1929 also unemployment was 3.1 percent by 1939 that stood at 25 percent” (Roak etal,859) many of the men and women that were unemployed become sick and less hope full.
In other hand, unemployed of men resented women workers because it caused unemployed of women.
Labor leaders were anger of unemployment and postponed to pay wages to workers and a like those “the American people were slowly to anger on the march 7, 1932” (Roak etal, 861) the thousand unemployed outdo workers gathered at the Henry ford factory.
“Ford encountered with them by tear gas and freezing, four demonstrators were killed and dozens more were wounded, but Resistance also continued, when landowners cut their laborer's substandard wages more than 50000 farm workers went on strike in 1933” ( Roak etal )
the hard time of American Great Depression Caused to bring the socialism in American life and framed communism party in American history.
The American Great Depression shook up all parts of American society.
Some of the people were hurt but especially the poor people were hurt very most.
People in way of search of food or work
“Brother can you spare a dime?”(www.english.uiue.edu )
The person who had president over the economic collapse and to lead the nation back to prosperity was president Hoover.
Hoover couldn't finish this crisis, so he and his reputation were among the first casualties and artisans demanded new leaders to save them from the Depression (Roak etal , 852)



Roosevelt and the New deal
The new deal replaced the fear.
Symbolized by hover's expulsion of the “Bonus Army” with Roosevelt's confidence optimism and energetic pragmatism ( Roak etal , 837)
The American agreed with Roosevelt as the federal government caused that he helped people for needs and to draw the program about Great Depression that named New Deal.
“Republicans and other conservative claimed that the new deal amounted to a form of socialism that threatened democracy and capitalism” (Roak etal , 875)
The other hand, the first new Deal from 1933 -suggested by Roosevelt- focused mainly on recovery for the poor and unemployment.
“The basic assumption of the New Deal was that a just society could be created by superimposing a welfare state on the capitalist system” (Nash, 720)
He set his opinion according to the American capitalism roots and we shall say that saving of those Depression conclude of capitalism ways.
After the first New Deal Roosevelt moved his programs justice (Nash, 720).
Then the second New deal framed around of work Relief and social security.
“ Social security created a system of insurance of insurance for the aged, unemployed and disabled based on employer and employee contributions” (www.english.uiue.edu ).
The approval of the works progress Administration (WPA) employed about three million people. Roosevelt was more interested in helping working people by social legislation.
The New Deal legislation didn't solve all of the problems but helped to the Ambivalence of the crashing economic.
The New Deal ultimately strengthened corporate capitalism.
The US and Global capitalism
The victory of America capitalism is not unfounded issues that economic historians had created themselves.
The economic grow thing speed in America between 1880 and starting the present century not compared with other achievement.
Free market , repletion of capital and investing actions have caused the economic growth in America and attendance of men that succeed to lead economic affairs and published the philosophy of industrial new Age as a gospel wealth. (Debouzy, 140)
Last century was the century that was said “American century” by obstinate defenders of American capital system.
It seems that there weren't events as Russian October Revolution and China and Cuba Revolution that changed the face of world economic system.
According to the title of this part Globalization of capitalism is the concept that considers in recent decade and it is challenged in world level.
The concept that declares new birth for capitalism system. And, I argue about this concept in this part. (Meszaros, 3)
"The central place the united state now occupies whit in global capitalism rest on a particular convergence of structure and history. In the abstract, we can identify specific institutions as reflecting the structural power of capitalism. But what blocks such institutions from emerging and what, if any thing opens the door to their development, is a matter of historical conjunctures. The racial phase in the reconstruction of global capitalism
Occurred during and after world warII. It was only after the disasters of depression and the Second World War that capitalist globalization obtained a new life."(Iinns, 12)
The role of the US came to play in world of capitalism was inevitable.
The US only was not a country that neoliberal system but moved to side of new state creation that called capitalism.
American capitalism has changed dramatically in the last fifty years but still exists and breathes.
"The US was of course not the only country to introduce neoliberal policies but once the American state itself moved in this direction, it had a new state (capitalism)
Now operated under a new form of social rule" (linns,12)
American capitalism has changed dramatically in the last fifty years but still exists and breathes.
Kautsky said in 1911 that the US is country that shows us our social future in capitalism. And today after many years this discussion still is correct.

Finally, I decide to bring many evidences about growth of American economy:
Economically, the American power doubles that of Japan, the second greatest economic power. American has created the highest amount of economic growth, and the highest innovations which is annually estimated. (This is two times as the next great power) American has used the highest percentage of the existing labor work. Most of the economic decisions are made by American citizens and private faire, meanwhile, the government having a vital role in the economic life of the country.
In whichever indicator, the flexible natures of the United States get revealed.
The general annual production in goods
American covering only five present of the world's population, American its 130 million workers produces 1/4 of goods and services in the world.
According to New York Times report in 1999,"eight greatest of world's
cooperation are American" other major American products:
1- oil industry 2-agriculther 3-steel 4-chimical products 6-electronic 7-nutritional 8-mine
As American farmers are predecessors among all nations in the production and export of foods, they are called the "world's bread- winners"
The economy of the US is the economy based on free market and trade. This approach means that all of American citizenships and private institution decide themselves about most economic subjects.
In free trade system .all of citizenships act according to the own their initiative. In free trade system is not enough just attempt and danger always exists (for example American Great Depression)
Henry Ford said: the failure just is opportunity for again start.

Refrence
1. http:www.\The American Experience Surviving The Dust Bowl People & Events The Great Depression.htm
2. http://www.english.uiue.edu/maps/depression/overviwe.htm
3. http://en.wikipedia.org/wiki/great_depression
4. Marcus.web,the united state 2002,fatima shadab,1383(shemshad,Tehran)
5. Gray b nash,John r howe, Allen f Davis,….,the American people:2003(the US: London)
6. Meszaros istvan,socialism or barbarism from the "American century" to the crossroads,m.mohit, 2001(new york:montly rivew press)
7. Debouzy Marianne,le capitalism souvage aux etats_unis,Mghazi, 1900(Tehran:kharazmi)
8. JAMES L.Roak, Michael p.Johnson, Sarah stage, Alan Lawson, American Promise ,Boston New York.