The Great Depression and Its Dramatic Effect on U.S. Government Institutions

The role of government institutions had changed dramatically by the end of the Great Depression compared to how it was before the economic turn. Due to the severe economic collapse among industrialized countries, most especially the United States, the event "fundamentally changed the relationship between the government and the people, who came to expect and accept a larger federal role in their lives and the economy".[1] This can be illustrated by various policies and movements of the government to promote cooperation to fight the hardships experienced during the event.

For one, there is the passing of the Social Security Act of 1935 in which, "individuals who have reached age 65 and have withdrawn from regular employment (are entitled to) life income payable in monthly installments"[2] and those who "after December 31, 1936, and before the date of reaching age 65 have worked in commercial or industrial employment in fewer than five calendar years or have earned total wages of less than $2,000 from such employment will be given a lump-sum payment as well as those third estates of wage earners in covered employments who die after December 31, 1936, and before reaching 65 years of age"[3]. Secondly, another role of the government is the implementation of the National Labor Relations Act that guarantees "workers the right to join unions without fear of management reprisal".[4] Thirdly, in the fear of the possibility that another Great Depression will strike again, the "political inclination was to act sooner, rather than later, to halt a slump".[5]

In summary, the greater intervention of the government on its citizens after the Great Depression was a scenario deeply diverging from the individualistic American society prior to the event.

Highlights of American History

The Panama Canal

"The Panama Canal across the Isthmus of Panama in Central America... consists of artificially created lakes, channels, and a series of locks, or water-filled chambers, that raise and lower ships through the mountainous terrain of central Panama".[6] In 1904, this was built by the efforts of the Americans to expand trade by linking the East and West coasts. Initially, there were conflicts with regard to the sovereignty of the area but the US has managed to win over through a treaty under the regime of Pres. Theodore Roosevelt by establishing a territory in Panama through the canal and from then on, the US economic power has boosted up. This is because the US was able "to move its war vessels from ocean to ocean much more quickly, saving resources and enhancing naval power".[7] In addition, commerce and trade of the US expanded, making the country the principal power in the Caribbean basin, if not the entire western hemisphere".[8]

The Boxer Rebellion

The Chinese people were being looked down to by people of the foreign lands. So as a revolt to the situation at that time, the Chinese came up with Boxer Rebellion "against foreigners, the representatives of alien powers, and Chinese Christians in 1900".[9] However, in order to protect their legations in China, an alliance was formed among France, Japan, Russia, Germany and US.[10] Moreover, much to the disappointment of the perpetrators of the revolt, the alliance proved to be stronger than them. On the side of US, this event further increased the country's global power and prestige as they were able to deploy large number of ships and troops in the Philippines, reinforcing the American mindset "to retain control of the latter and to maintain a strong presence in the Far East".[11]

Wilson's Fourteen Point Plan

Pres. Woodrow Wilson was an advocate of peace. Towards the end of the World War I, he endeavor to maintain peace among the nations through his formulation of the Fourteen Point Agenda, upon which the League of Nations was founded "for the purpose of affording mutual guarantees of political independence and territorial integrity to great and small states alike".[12] These plans were addressed during "a joint session of the U.S. Congress on January 8, 1918".[13] With this, the US once again gained influence as Wilson's leadership became renowned, making the US gain favorable public opinion.

World War II and US as a Superpower

The World War II contributed to the development of the US as a Superpower. This was made possible because first, "during the 1930s and throughout World War II, the federal government subsidized larger American corporations by massive military spending"[14] which is estimated to be at $341 billion.[15] Hence, the US military was reinforced contributing to the country's position as a Superpower. Secondly, the US used the atomic bomb on Hiroshima and Nagasaki in Japan, making one of their strongest enemies surrender before them.[16] Furthermore, the US also gained its current position in world affairs because of the Atlantic Charter signed with the Great Britain, encouraging freedom among the nations and strengthening trade through opening all access to natural resources, thereby, improving the economic and living conditions.[17]

Bibliography

"Atlantic Charter." Microsoft Encarta Encylopedia.

Birchard E. Wyatt, William H. Wandel and William L. Schurz, The Social Security Act in Operation: A Practical Guide to the Federal and Federal-State Social Security Programs. Washington, DC: Graphic Arts Press, 1937), p.37.

"Boxer Uprising." Microsoft Encarta Encyclopedia.

Chris H. Lewis, Ph.D., How did American involvement in World War II affect American society and culture? 2002, http://www.colorado.edu/AmStudies/lewis/2010/hitler.htm, (April 13, 2008).

Alexa Gates, Atomic Bombs and World War II, 2008, http://www.socyberty.com/History/Atomic-Bombs-and-World-War-II.92748> (April 13, 2008).

Conniff, Michael L. "Panama Canal." Microsoft Encarta Encylopedia

E.F. Ziemke, "World War II." Microsoft Encarta Encyclopedia.

Naval Historical Center. The Boxer Rebellion and the U.S. Navy, 1900-1901, http://militaryhistory.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=militaryhistory&cdn=education&tm=9&f=00&tt=11&bt=0&bts=0&zu=http%3A//www.history.navy.mil/faqs/faq86-1.htm, (April 13, 2008).

Peter M. Sanchez, "The End of Hegemony? Panama and the United States," International Journal on World Peace. XIX (2002), 57.

R.S. McElvaine, "Great Depression in the United States." Microsoft Encarta Encylopedia.

Robert Samuelson, The Concise Encyclopedia of Economics. http://www.econlib.org/Library/Enc/GreatDepression.html> (April 13, 2008).

"Woodrow Wilson." Microsoft Encarta Encylopedia.

[1] McElvaine, "Great Depression in the United States," Microsoft Encarta Encyclopedia.

[2] Wyatt, Wandel & Schurz, 1937, p.37.

[3]Ibid., p.38.

[4] http://home.earthlink.net/~local1613/nlra.html (accessed on April 13, 2008)

[5] http://www.econlib.org/Library/Enc/GreatDepression.html (accessed on April 13, 2008).

[6]Ibid.

[7] Sanchez, p.57.

[8]Ibid.

[9] "Boxer Uprising." Microsoft Encarta Encyclopedia.

[10]Ibid.

[11] http://militaryhistory.about.com

[12] "Woodrow Wilson." Microsoft Encarta Encyclopedia.

[13]Ibid.

[14] http://www.colorado.edu/AmStudies/lewis/2010/hitler.htm (accessed on April 13, 2008).

[15] Ziemke, "World War II." Microsoft Encarta Encyclopedia.

[16] http://www.socyberty.com/History/Atomic-Bombs-and-World-War-II.92748 (accessed on April 13, 2008).

[17] "Atlantic Charter." Microsoft Encarta Encyclopedia.