Term Paper on "Industrial Development in Europe and USA"

Term Paper 6 pages (2583 words) Sources: 0

[EXCERPT] . . . .

Industrial development in Europe and USA in the middle of 30-ties of 20th century was not that successful as it used to be several years before and sure it cannot be compared with the year 1939. 1934-1939 period can be characterized as a period of instability, economical crises and great changes in some countries, such as Germany (Nazi industrial program,), USSR (Stalin's -- industrialization -- ) and USA (Great Depression and Roosevelt's New Line politics).

I'll start with countries of Capitalist world (including Nazi Germany and USA) suffered from economical crisis and I'll try to find out their main attempts to improve and stabilize their national economics.

United States of America

Beginning of 20th century was a very intensive period of American economics development. American businessmen received amazing profits from selling military machines and some other goods while Europe and Russia were fighting. American budget grew and very soon a -- Wild West country -- as Europeans treated it became world leader in industrial production. But in the end of 20 ies American economics collapsed and that was the result of world economical crisis which included all national economics of all capitalistic states. Those times were very tragic: poor workers lost their small incomes, small businessmen lost all savings. Very soon former businessmen started earning money by selling fruits and vegetables in the streets of their cities. Homeless people were happy if they managed been arrested because they were fed for free in jails. Number of jobless people increased in several times: "100 thousand American workers pretended on 6 thousand building vacancies in USSR....some of them were going to leave USA as they got some job there..."(the Great World War 1914-1945 -- Volume 1: Lightning Strikes Twice

John Bourne, Peter Liddle, & Ian Whitehead page 134).

Even rich Americans had to economize. For example, Conrad Hilton closed several floors in all hotels and turned off phones in the hotel rooms to economize 15 cents per month. Bethleem Steel Company fired 6 thousand workers and crashed their houses which were built by this company' the aim was - stop paying taxes for those houses.

President Hoover was afraid of the possibility of revolution in 1932. People could no longer live in such conditions. They wished great changes and hoped that president elections would change the situation. Sure, they didn't support Hoover as they didn't want to listed to his promises no more; they trusted another man - Democrat Franklin Delano Roosevelt.

He proclaimed New Line politics, which had to stop crisis and improve American economics.

First of all he reconstructed bank system and promised citizens that he would open only reliable banks (but there were no such banks). People believed him. June 1933 his administration created special insurance company, which had to unite all banks (they had to participate in it). This measure helped both banks and people. As a result in 1935 bankrupted sums were 34 million dollars (1931-146 millions).

Second aim was reconstructing industry and agriculture. To fulfill this program 2 laws were adopted in 1933. One of them settled prices for goods, number of produced goods etc. This was one step back from capitalism and it can be characterized as necessary measure which had to improve the situation with Soviet methods of state's regulating of national economics. This program succeeded and Roosevelt managed helping industrial monopolies. Another law increased prices of agricultural goods and it helped farmers' effective work.

Another point of New Line was creating new vacancies, as there were too many jobless people who used to experienced businessmen, workers, teachers and doctors. Roosevelt created special centers in every state to support jobless citizens by small payments. -- in 1933 every jobless family received 15,5$. At the end of this year they received 30,45$ -- (World Economics J.Simon, M. Miller. WestPrint 1988-page 219). Number of unemployed people lessened lot and in 1935 it amounted 10 million people (not that much as before).

Adequate measures provided by F.D. Roosevelt helped United States to stop economical crisis but there still was a great aim - raising national economics. Unfortunately in 1935 Supreme Court found these measures unconstitutional because it created not equal conditions for competition. But nevertheless, Roosevelt's program did a lot and already in 1935 industry was saved from bankruptcy and United States was ready to go ahead improving the situation.

Not everything was that successful. After laws which regulated developing of agriculture and industry were found unconstitutional a new problem appeared. Historians call it -- depression inside depression -- which lasted till 1938. Industrial development was not that fast as government wanted it to be, because President was no longer able to influence private enterprises which took into consideration only their own but not national interests of the whole American nation. I'll set a frightening example which can explain this tragic period: -- Only in 1940 American economics and industry amounted American economical figures of 1929, but even in 40 ies there were 14% of jobless people (7,5 million) -- (World Economics J.Simon, M. Miller. WestPrint 1988-page 290).

But still New Line was successful. Federal government increased expenses from 4266 millions up to 10-061 million dollars. (1932-1940).

Results of Great Depression were terrible and United States as a result, was not able to help Britain and Soviet Union in time when they suffered from shortage of ammunition and military machines. Great Depression caused millions of casualties during WWII because Second Front was opened only in 1944. Roosevelt faced resistance of leading businessmen who supported (!) NSDAP! It is not a secret that some monopolists gave huge sums of money to Hitler and his party, invested them in Nazi industry but they knew that Hitler was evil man and USA could expect nothing good from his regime. We have to thank Roosevelt's activities because he managed preparing USA to a big war and his order to build new war ships and airfields was really necessary.

Situation in Europe was a little bit different:

France:

Economical crisis in France started later than in other countries. It was stopped for some time by receiving German reparations, reconstructing destructed regions, building defensive line. Industrial collapse began only in 1930 and it was less serious than in USA and Germany, but lasted longer.

We have to remember that French society united to resist fascists inside their own country. Communists could not do it on they own and they united with some radical capitalist parties to resist fascists and create a program of economical development. Their union was named National Front. January 1936 it published his program, which included also economical points which contained mostly social measures of improving the situation in the country. Government increased incomes of former soldiers, workers and liberated labor laws.

Important changes also took place in economical sphere. In 1937 -- several military plants were nationalized because French nation realized the threatening German politics and knew that France is one of the main objects of future German aggression... -- (the Great World War 1914-1945 -- Volume 1: Lightning Strikes Twice

John Bourne, Peter Liddle, & Ian Whitehead p. 159).

During 2 years (1935-1937) the results of French economical development was the following: -- industrial index was increased in 7 points and amounted 101 (94 points in 1935)... It amounted 72% of 1929 index (67% in 1935)... Coal mining was increased in 1%; Steel-20%... Export figures didn't change but import was 18% more. -- (World Economics J.Simon, M. Miller. WestPrint 1988 p.223).

French economical politics was not very radical if we compare it with German but France didn't face such terrible crisis as United States or Germany and that's why French nation managed easily overcoming crisis and strengthening national economics, especially military industry.

In 1937 French economical program was stopped and I think that was a great mistake. As a result French industry was not able to produce enough production as next government didn't find German threat real and hoped that Britain would help them in case of war. But they were mistaken and society's disrespect to own army turned out to be fatal mistake of French nation.

Nazi Germany

Nazi party (NSDAP) received political power in 1933. That was the beginning of great world tragedy and German leader knew what he was going to do. First of all he needed reconstruct German economics which suffered from paying reparations. As we know every national economics of that time was based on industry, and in such country as Germany - first of all - military industry.

To find out industrial and economical power of Nazi Germany we have to remember what German Nazism was." (Hitler's Gladiator. Charles Messenger, Conway Martim Press, 1988-Page 62). Nazi ideology formed as ideology of small businessmen, who as we know are not very rich people and who was loosing their social position because of economical collapse.

The main idea of Nazi economical politics was militarization of economics. Hitler promised small businessmen terminating monopolies and they believed him; that was the reason that his SA troops… READ MORE

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