Compare And Contrast The Sources Of American Economic Recovery During The 1980's

The economy began to recover in 1983 and was surging in 1984. Unemployment and interest rates dropped, allowing more Americans to buy homes and cars (Moss & Thomas, 2013, p. 236). Inflation dropped to four percent, the lowest since the early 1970s. Americans were earning more money, and oil prices were dropping, making fuel more affordable (Moss & Thomas, 2013, p. 236). “Economic growth generated 18 million new jobs and tripled the price of stocks by 1990” (Moss & Thomas, 2013, p. 236).

The late 1990’s into the early 2000’s was a time of great economic success that took a turn for the worst as the war against terrorism began. In America, the economy was at its peak especially on Wall Street until September 11th 2001. The attacks that occurred on September 11th deeply affected America. The attacks caused the Dow to drop tremendously along with causing the recession to deepen. America was led into of the biggest government spending periods in a long time. The cost to fund the war along with to rebuild the economy held a toll on all Americans. America had to dig itself out of a hole. Unlike the economy, technology was on the rise. Many new inventions such as wireless internet, mobile devices, and new forms of social media were created.

Conte & Karr (2001) report the economic growth of the 1980’s in the United States sees President Regan cutting taxes and slashing social programs. President Reagan also

In the 1990's America saw more poverty than ever before. The increase in the manufacturing business helped by creating more jobs for workers. These workers then received benefits from working.(Cooper 981).

There were many critical issues with Reaganomics, which was intended to help expand the economy, but it eventually became the downturn during 1981 through 1982 (Foner 832). For example, the wealthiest American families benefited the most from the economic expansion because they had spent most of their income not on productive investments and charity, but on luxury goods and corporate buyouts (Foner 832). Whereas, the poorest 40 percent of the population’s incomes have declined, especially those with wives who did not work outside of their homes (Foner 832). Foner states that the 1980s was remembered as a decade of misplaced values because buying out companies generated more profits than actually running them or

President Reagan’s radical tax cuts lead to a decrease in unemployment and an increase in incomes for Americans of all statuses. Despite the fact that, “in the late 1970s, the US economy was experiencing what was then the greatest economic crisis since the great depression… almost every economic measure substantially improved after Reagan’s reforms took effect” (Hannaford). Editors Pat Hannaford and Darcy Allen observe that, “by reducing America’s tax burden, Reagan’s

The new era economy reflected the industrialization that the country had just undergone. Although there was a recession from 1921-1922, after 1922 we enter a period of uninterrupted prosperity, and growth. As Americans incomes increase, and prices decrease, this allowed for more of a disposable income. Middle class families are now able to buy cosmetics, fridges, vacuums, and automobiles. Technology also greatly influenced the major economic growth that occurred. The automobile industry became the most important industry in the nation. It was very similar to a domino effect, once auto manufacturing increased and was successful, other industries such as, steel, rubber, glass, and oil companies also increased their production due to the purchases made by the auto manufacturers. Automobile manufacturing created jobs, and as the radius of cities was extended, the demand for more automobiles increased. Unfortunately, farming became a double-edged sword. In the 1920’s tractor usage quadrupled, but the problem was that the demand for agricultural goods was not increasing with increasing production. This created

The Great Depression was a severe economic slump down that took place between 1929 and 1939 (Sauert, 2010). Observers reckon that this historical event was the longest, demeaning, and most widespread recession. The resultant widespread economic hardship hit Europe, North America, and other industrialized economies (Olson, 2001). Also, in the 21st century, the international community has experienced yet another crisis, the Global Financial Crisis, which the observers of the global economic fora have similarly compared and contrasted with the Great Depression. The Global Financial Crisis offered itself as a case scenario that epitomes how deep the economy of the world can decline to abysmal levels.

From the Reconstruction Era through 1929 American changed drastically, economically, socially, and politically. The development of America’s society, economics, and politics is what defined America as a country. Of the three major ways that America developed from the Reconstruction era through 1929, the greatest catalyst for change was the economic developments because the rise and fall of the economy influenced both social and political developments.

Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending,

The United States economy has never been as great nor as equal as it was during the late 1940s-1970s, a period commonly known as the Great Compression. It is extremely ironic that the United States economy boomed and strived after only a few years succeeding the Great Depression. One may ask what stirred this dramatic change from a damaged economy to one that was striving and strong in so little time. To answer this question, one must look closely at the history of the United States economy. To be more specific, one must take a close look at how damaged the economy was during the Great Depression and how much the New Deal and other political and social factors impacted society to ultimately create the Great Compression.

There was a steel mill company created in the 1900 in Gary by a president of the United States name Elbert H. Gary it was named after him. The steel started getting popular because everyone nationwide was using it to build railroads and homes. There three things they used to make steel such as iron ore, limestone, and coals. There was variety of coals that was used but the only one they use was called coke they had to burn a fuel that turned into coke. In order for them to make it, they had to make the coke burn at an extremely high temperature so they can produce it to melt big quantity of limestone and iron ore.

America following Reconstruction was completely different from America during FDR's New Deal. In 1876, the government was based on the ideas of Laissez-faire which meant that government stayed out of the citizens' lives. Society in 1876 was dominated by white men who ran the country while there were no rights for women, blacks, and immigrants. In 1876, Americans lived on farms in rural America. By the 1930's, America was a welfare state with government just starting to control different aspects such as economy and corporations. In the 1930's women, blacks, and immigrants all had the right to vote, and the majority of Americans were living in cities. Blacks had the right to vote; however, they were usually disenfranchised by whites.

The Great Depression was a severe worldwide economic collapse that occurred in the 1930s. It was a pivotal moment in American history. Its effects were not only felt in the United States, but spread worldwide. In response and as an attempt to rectify the calamity, President Franklin D. Roosevelt launched a set of federal programs called the New Deal.

Reaganomics refers to economic policies implemented during President Reagan’s administration from 1981-1989. The main ideology of Reaganomics was conservation which promoted that “government is the problem, not solution”. That means, society and market would function better with limited government power and regulations. Accordingly, Social wealth was distributed by unrestricted market, and profits that capitalists earned would trickle down to the bottom of society. In this way, people were in charge of improving their lives instead of relying on the aid of government. In order to recover from the economic crisis occurred between 1981and1982, the major Reaganomics objectives was to reduce government intervention in business and social aids. The policies were specified as marginal tax cut, tightening money supply, reducing social welfare programs and regulations. Generally, Reaganomics that impact citizens the most would be tax cut, reducing welfares and regulations.