The economic history of North America

The economy of North America comprises more than 514 million people in 23 sovereign states and 15 dependent territories. It is marked by a sharp division between the northern English and French speaking countries of Canada and the United States, which are among the wealthiest and most developed nations in the world, and the countries of Central America and the Caribbean that are less developed. Mexico lies in between these two extremes as a newly industrialized country or NIC, and is a part of The North American Free Trade Agreement (NAFTA).

The 1920s were a time of economic growth and prosperity in North America. Increased incomes and the large increase in the ability of private citizens to obtain credit resulted in a surge of consumer spending after World War I.

The Great Depression began in North America in October 1929. The start is often dated to the stock market collapse of Black Friday although this was not the cause of the Great Depression. Canada and the United States experienced especially large declines. The economy reached its lowest point in 1933, however recovery was slow. The outbreak of World War II in 1939 created demand for war materials that could bring about the end of the depression.

The Great Depression spurred increased government intervention in the economy in North America. The United States introduced unemployment insurance, a minimum wage and standardised working hours. Canada introduced similar measures. Mexico nationalised some key industries during the Great Depression. The oil industry was nationalised in 1938.

During World War II women had to enter the workforce, filling many jobs in manufacturing and technical areas that had previously been closed to women. The economic output in North America increased substantially. Unemployment was practically eliminated in the United States. Rationing severely reduced the availability of consumer goods. The increase in industrial production was coming from the demand for war materials.