Economic history of the United States
Panic of 1873 created one of the worst and longest depressions in American history, seriously affecting every aspect of the economy and bringing the railroad expansion to a halt. The New York Stock Exchange closed for ten days. Of the country's 364 railroads, 89 went bankrupt, a total of 18,000 businesses failed between 1873 and 1875, unemployment reached 14% by 1876, during a time which became known in Britain as the Long Depression. Politically, the Democrats took control of Congress in 1874, the election of 1876 was deadlocked.
History of the United States
In the Depression years, the United States remained focused on domestic concerns while democracy declined across the world and many countries fell under the control of dictators. Imperial Japan asserted dominance in East Asia and in the Pacific. Nazi Germany and Fascist Italy militarized and threatened conquests, while Britain and France attempted appeasement to avert another war in Europe. U.S. legislation in the Neutrality Acts sought to avoid foreign conflicts; however, policy clashed with increasing anti-Nazi feelings following the German invasion of Poland in September 1939 that started World War II. Roosevelt positioned the U.S. as the "Arsenal of Democracy", pledging full-scale financial and munitions support for the Allies – but no military personnel. This was carried out through the Lend-Lease agreements. Japan tried to neutralize America's power in the Pacific by attacking Pearl Harbor on December 7, 1941, which catalyzed American support to enter the war.