New York City experienced major changes in the early 20th century as it transitioned from a trading post to the economic capital of the world. The Great Depression devastated the city in the 1930s, but Mayor Fiorello LaGuardia helped rebuild infrastructure and end corruption. Racial segregation also increased during this era, with policies that divided neighborhoods by race. The construction of iconic skyscrapers like the Empire State Building symbolized New York's continued growth despite economic hardships.