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Stock Market Crash (Catalyst)
The stock market started to decline and eventually lost around 11% of its value after Clarence Hatry a British investor and many of his associates were arrested for fraud. This caused mass panic and over the course of two days over 20 million shares were sold. Approximately $25 billion was lost worth $319 billion today. This event triggered the ensuing Great Depression. -
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The Great Depression
The stock market crash of 1929 wiped out millions of investors crumbling the american economic infrastructure. This set the tempo for the next decade with middle class families loosing their homes and investments, the lower class falling to an even lower standard of living, and even the rich suffered because their money was so closely tied to the stock market. Worldwide consumer spending dropped and over 15 million Americans were unemployed. -
FDR's Presidency
The american economy and society was at an all time low because of the onset of the great depression. The american people demanded government intervention in the economy, this caused a massive shift in support for the democratic party when citizens realized the republican Laissez-faire policy would not stabilize the market. FDR campaigned on the basis of his "New Deal" legislation which would provide security for financial sector and improve healthcare for the middle and lower class,. -
America Joins World War II
Japan's invasion of Indochina put pressure on President Roosevelt to act, so in September of 1941 the US and its allies placed an embargo on Japan crippling its industrial and manufacturing sectors. FDR felt that reinforcing America's allegiance to its allies would be crucial to maintaining commerce between member nations which was essential to our crippled economy. However in retaliation to the embargo Japan bombed pearl harbor killing 3500 american soldiers forcing the US to enter WWII. -
Containment (Korean War) Part 2
The Soviet Union started to support a communist state in North Korea. The problem escalated when North Korea supported by China and The Soviet Union invaded South Korea. The UN security council recognized this as an act of war and immediately mobilized troops led by General Douglas MacArthur. The war took over half a million lives, lasted 3 years, and resulted in Korea being split at the 38th parallel. -
Containment (Korean War) Part 1
The aftermath of World War II had propelled the United Stated out of The Great Depression through the mobilization of American manufacturing and industry due in part to the war effort. However another problem was soon facing America and this was because of the looming shadow caused by the Soviet Union. The Soviet Union wanted to spread communism throughout the world, President Truman vowed to stop the spread of communism and championing democracy. -
Containment (Vietnam War)
President Johnson saw the growth of communist North Vietnam as a threat to US democracy. The problem intensified when North Vietnam fired on a US ship, Johnson immediately mobilized troops to invade Vietnam. By 1966 around 380,000 American troops were stationed in Vietnam and a massive bombing campaign was launched in an attempt to stop the spread of communist North Vietnamese troops. The invasion of Vietnam and Korea showed a dramatic change in America's previous Laissez-Faire foreign policy.
