<P> Despite the Great Depression and World War II, the middle decades of the 20th century were among the highest for productivity growth . The research developed through informal cooperation between U.S. industry and academia grew rapidly and by the late 1930s exceeded the size of that taking place in Britain (although the quality of U.S. research was not yet on par with British and German research at the time). </P> <P> Productivity growth in manufacturing slowed from the electrification era of the early century, but remained moderate . Automation of factories became widespread during the middle decades as industry invested in newly developed instruments and controls that allowed fewer workers to operate vast factories, refineries and chemical plants with fewer workers . </P> <P> Following the stock market crash, the worldwide economy plunged into the Great Depression . The U.S. money supply began to contract by one - third . The protectionist Smoot--Hawley Tariff Act incited retaliation by Canada, Britain, Germany and other trading partners . Congress, in 1932, worried about the rapidly growing deficit and national debt, and raised income tax rates . Economists generally agree that these measures deepened an already serious crisis . By 1932, the unemployment rate was 25% . Conditions were worse in heavy industry, lumbering, export agriculture (cotton, wheat, tobacco), and mining . Conditions were not quite as bad in white collar sectors and in light manufacturing . </P> <P> Franklin Delano Roosevelt was elected President in 1932 without a specific program . He relied on a highly eclectic group of advisors who patched together many programs, known as the New Deal . </P>

What was american economic life like in the 1780s