Economics...In Real Life

The 1930’s was an era of harsh times for the American until they entered World War II. The stock market crash and dustbowl contributed to the start of the downfall of America for a period of time. Franklin D. Roosevelt and Herbert Hoover both

The America in the 1930s was drastically different from the luxurious 1920s. The stock market had crashed to an all time low, unemployment was the highest the country had ever seen, and all American citizens were affected by it in some way or another. Franklin Delano Roosevelt’s New Deal was effective in addressing the issues of The Great Depression in the sense that it provided immediate relief to US citizens by lowering unemployment, increasing trust in the banks, getting Americans out of debt, and preventing future economic crisis from taking place through reform. Despite these efforts The New Deal failed to end the depression. In order for America to get out of this economic

During the 1920’s, America was a prosperous nation going through the “Big Boom” and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the

The Roaring Twenties is known as an age of parties, jazz, and overspending. After World War I, the optimistic American people reacted by celebrating and overspending. They purchased new appliances such as cars, radios and refrigerators; they purchased luxury items like clothes and invested in stocks. Their new attitude towards the booming American economy was carefree, leading to a series of events. First the stock market crashed. Next, the banks failed. Then, companies laid off employees who were unable to make the payments on the items they purchased. Tariffs and droughts further complicated the situation. This decade became known as the Great Depression, because the economic setbacks impacted everyone and everything. But the question is “Why did Americans lose so much money in such a short period of time?” One answer is, the failing stock market. A second is unregulated banking systems which allowed for buying on margin. Third, the lifestyle following World War I was too materialistic. The Great Depression was caused by Americans failing to responsibly manage their money.

The 1920s was known for its prosperous and flamboyant lifestyle. The GDP during that time had risen by 30 percent and unemployment was as at an all-time low of 3 percent. This was not meant to last forever. In fact, it was nearly impossible for this to last any longer than it did due to an imbalance that society was unaware of including that not every citizen was experiencing this uncommon wealth. There were still 3 percent unemployed and even some of the employed members of society did not make enough to support a family and were considered homeless. It was in October of 1929 when this so-called luxurious lifestyle vanished as the stock market crashed at a time when the stock market seemed it would never stop increasing. This caused an economic, downhill, rolling ball effect. Those who took out loans to invest in stocks could not afford to repay the banks causing the banks to fail and close down. When the banks closed down, the depositors of that bank lost their life savings causing them to go broke and some company owners to close their doors. This led to a loss of jobs by the employers of those companies. This time period was known as the Great Depression and rightfully so. It is the most significant setback in the American Economy to date. The Herbert Hoover administration was in effect at this time giving the society an easy target to blame. Come time for the next election in 1932, Americans were ready for a change in authority to bring them out of this seemingly black

The Depression changed social structure in America forever. “The real story of the 1930’s is how individual families endured and survived, whether battling the despair of hunger and unemployment in the city of the fear of unending drought and forced migration in the dust bowl of the Great plains.” (Press, Petra pg 6)

The 1930’s were certainly a marked departure from the 1920s. The nation plummeted into the worst economic depression in its history and the social and cultural consequences were huge. One of the most interesting developments is the changing relationship between intellectuals and the broader public in those years. Many American writers like Zora Nealle Hurston, F. Scott Fitzgerald, William Faulkner, and Ernest Hemingway grew skeptical and weary of the general public during the 1920s, but during the Great Depression, were moved by the hardship they witnessed, the nation began to empathize with and work through the struggles of ordinary Americans. If the 1920s was marked by cultural division and by the disillusionment of intellectuals, than the thirties were marked by economic despair and by the discovery of the virtuous “common man” by the nation’s intellectuals. The period of the 1920s and 1930s is arguably the richest period in intellectual life of the nation and for that reason alone people should have some familiarity with it. The parallels between the cultural debates of that era: over immigration, religion, the role of the federal government, and the meaning of the American Dream. An understanding of the time between World War I and World War II years will enhance the understanding of the cultural, political, and economic debates of the present.

This paper will present a brief summary and discussion of the causes of the Great Depression based on Frank Stricker 's paper, "Causes of the Great Depression: or What Reagan doesn 't know about the 1920s." Stricker presents an argument as to what he believes to be the root causes of the Great Depression as they relate to the decade preceding the stock market crash of 1929. This review is intended for undergraduate and graduate students of U.S. American History. Stricker present 's several essential points in his paper. The capitalist form of economy, by its nature, has an insatiable appetite for ever-increasing profits. During the 1920 's profits were high, yet income distribution was unequal (95). The only real benefactors were

America had been a generally conservative nation with a population that avoided personal debt. However, this would all change during the decade known as “The Roaring Twenties.” This prosperous period embodied huge changes in the general lifestyle and culture of the American people as they embraced consumerism. However, during the 1920s the economy also faced numerous unfortunate events and unstable practices that would lead to one of the world’s worst economic crashes. There were many reasons for the economic downfall, including mass production and consumerism, excess credit and ‘playing’ the stock market, which led to the stock market crash in 1929.

When the citizens had bought all that they could buy, there was a decrease in demand. Suddenly, the industries had an excess of goods and no one to sell it to. At this point, the Fordney-McCumber Act began to cripple the economy of America. Other nations introduced high tariffs to boost their revenue and to spite the United States. Sadly for the United States, these high tariffs and low demand were instrumental in the depression that America experienced. When the stock market crashed on October 29th, 1929 or “Black Tuesday”, the united states, along with other nations were in economic turmoil and the widespread prosperity of the 1920s ended abruptly. The depression threatened people's jobs, savings, and even their homes and farms. During the heart of the depression, over one-quarter of the American population was out of work. For many Americans, these were extremely hard times. When Roosevelt was voted into office, he introduced the New Deal. While this plan tried to help the united states out of it’s isolationist rut, the second world war was the final solution. Mobilizing the economy for world war finally cured the depression. Millions of men and women joined the armed forces, and even larger numbers went to work in well-paying defence jobs.

American life prior to World War II may have not been the best from 1931-1939. Already in the Great Depression that started in 1929 people were left very discouraged and hopeless. In 1932 the economy was the worst it had ever been, it had hit rock bottom (p. 850). Many had lost their jobs and over 11 million Americans could not find work (p. 850). America was at its worst and people were hungry, suicide rates had risen and people were having less children than ever before. People’s reaction to the

The 1920s seemed to promise a future of a new and wonderful way of life for America and its citizens . Modern science, evolving cultural norms, industrialization, and even jazz music heralded exciting opportunities and a future that only pointed up toward a better life. However, cracks in the facade started to show, and beginning with the stock market crash of 1929 the wealth of the country, and with it the hopes and expectations of its people, began to slip away. The Great Depression left a quarter of the population unemployed and much of the rest destitute and uncertain of what the future held. Wealth vanished, people took their money out of banks, and plans were put on hold. The most significant way in which the Great Depression affected Americans’ everyday lives was through poverty because it tore relationships apart and damaged the spirit of society while unexpectedly bringing families together in unity.

In 1929 one of the biggest crises in American history occurred, known as the Great Depression. In his book Daily Life in the United States, 1920-1940: How Americans lived through the ‘roaring twenties’ and the Great Depression, David E. Kyvig writes not only about the Great Depression, but of times leading and following the worst years of it. From prohibition, to women’s right, the uprising of automobiles and technology, the crash of the depression, a new deal, and how American recovered, Kyvig takes his reader through the works. Let’s take a deeper look into the lives of Americans during the 1920-1940’s.

While technological and cultural changes were at an all-time high, many people experienced harsh times and a lack acceptance. This time in US history has monikers, including: The Roaring Twenties and The Jazz Age. But, in actuality, it is similar to post Civil War America in the time called the Gilded Age. The 20s were romantically excessive, socially diversifying, and on the outside seen in a golden hue. However, on the inside, they were dark, flawed, and exclusive. The 1920s did propel the United States of America in to modernism but instigated the attitude that lead to the most devastating recession in history, the Great Depression. Bringing back to mind the buy now pay later sentiment, the American people paid dearly in 1929 when the stock market utterly collapsed. (Especially those who were not on the successful side of the spectrum.) Nonetheless, this time is history for a reason. And that reason is that the mistakes of the past can hopefully be

The roaring twenties was a time filled with hope and change. President Warren G. Harding promised a “return to normalcy”, which reflected his own conservative values and the voters’ wants for stability and order. Americans felt that they had been through more than enough, and desired prosperity. During the years 1919 and 1920 the Eighteenth and Nineteenth Amendments were passed; the outlaw of alcoholic beverages and the right for women to vote, which ones of the many reasons society was turning their backs on Progressivism. Republicans were beginning to return to their previous dominance. The 1920’s was an economic boom for America, including everything from an increase in jobs, a rise in plentiful goods, new consumer products, and the reduction of taxes. The country was filled with jazz music, dance, and what appeared to be a brighter future. The 1929 crash of stock market was the beginning of a downward spiral leading in to the Great Depression. The stock market crash is often to be confused as the cause of the Great Depression, although that is false. A few of the issues that lead to the Great Depression included; farming (which decreased in demand as farms increased through the states during World War I), banking, and mass unemployment. Capitalism took shape as what was once the individualistic Protestant work ethic was reshaped into industrial work on a grand scale. Each worker contributed to the greater good, and the workers were presided over by a boss