After the Great Depression hit America, the Fed raised interest rates, which was precisely the wrong thing to do and exacerbated the problem.
The US government refused to listen to the new Keynesian theory about using government spending to restore the economy, and recovery efforts were slow and usually in the hands of private companies or local state governments. The government didn't want to become a "public dole" and tried to spend as little money as possible. That is, until WWII broke out and the US government essentially wrote a blank check for funding the Allies' war effort. When it was all said and done America controlled half the world's wealth and accidentally proved Keynes' theory correct, which has shaped economic theory every since.
Not very funny, but during World War II the American government moved thousands of Japanese Americans on the West Coast into mandatory camps, despite the fact that an FBI investigation had revealed no evidence of treason. The area closest to Japan and least "American," the island of Hawaii, refused the order because it would have hurt their economy, while innocent American-born Japanese lost over 400 million dollars worth of property after the forced incarceration. It took 40 years for the US government to officially admit they had made a mistake, and they paid $80,000 to the victims - the ones who were still alive at least.
The US government refused to listen to the new Keynesian theory about using government spending to restore the economy, and recovery efforts were slow and usually in the hands of private companies or local state governments. The government didn't want to become a "public dole" and tried to spend as little money as possible. That is, until WWII broke out and the US government essentially wrote a blank check for funding the Allies' war effort. When it was all said and done America controlled half the world's wealth and accidentally proved Keynes' theory correct, which has shaped economic theory every since.
Not very funny, but during World War II the American government moved thousands of Japanese Americans on the West Coast into mandatory camps, despite the fact that an FBI investigation had revealed no evidence of treason. The area closest to Japan and least "American," the island of Hawaii, refused the order because it would have hurt their economy, while innocent American-born Japanese lost over 400 million dollars worth of property after the forced incarceration. It took 40 years for the US government to officially admit they had made a mistake, and they paid $80,000 to the victims - the ones who were still alive at least.