The Social Impact of Economic Crises

Most of the economic problems were attributed to World War I. In the aftermath, economies were trying to recover from the losses while nations in Europe strived to repay the debts acquired in the war. The United States was affected by the depression to a large extent and it ended just before the beginning of Second World War which again led to enormous spending to finance the war. Its impact affected the social lives of people even long after it ended. In a bid to conquer the impact of the great depression, President Roosevelt of the United States established a peace time strategy which had wide transformation within the free trade structure thereby encouraging the formation of the welfare states. The government would intervene in to socio-economic activities with the aim of assisting the citizens at a wider perspective. After the great depression, the government and the citizens learned to appreciate the role of the government in ensuring the welfare of the people as well in economic development. The programs created by President Roosevelt culminated in political alliances. These alliances were important in the eventual formation of the Democratic Party. The depression played a significant role in shaping the lives of many Americans. None of them would like a repeat of the suffering that they underwent within that period. They could now see the need to save money for future use. This ended up improving their asset ownership in order to secure property that could assist them in such difficult times.