Free Essay

From Boom to Depression

In:

Submitted By cmb4brown
Words 1962
Pages 8
Running head: A new deal to recovery

From Boom to Depression
HIS105: Contemporary U.S. History
May 10, 2012

From Boom to Depression
The period after the civil war was a time of physical, economic, social, political and geographical reconstruction for the United States of America. The nation had experienced mark destruction by the civil war. Slaves were now emancipated and must be considered. These events were marked turning points for the country. Of these turning points, the social security act and the 19th amendment were most influential in that they initiated an act of government that is still practiced today. 1. Identify at least (2) two major historical turning points in the period under discussion. The 19th Amendment

The woman’s fight for their own equality and for others was not an easy one. It can be traced as far back to the first woman’s right convention in Seneca Falls, New York in July of 1848. It was here that the woman suffrage movement was launched and the National American Woman Suffrage Association (NAWSA) was born. Some of the key sponsors for the launch were courageous women such as Elizabeth Cady Stanton and Lucretia. Contributors to the movement were also abolitionists, whose goals at the time were to include equal rights for all, including that of the Negro male. In 1870, their fight was partially won with the passage of the 15th amendment to the Constitution, thus giving the Negro male the right to vote.
The passing of the 15th amendment spurred the movement on for their own equality, and in July of 1890, the Territory of Wyoming, became the first state to allow women voters. By 1900, other states such as Utah, Colorado, and Idaho followed
By 1910, NAWSA was in full speed, this in part of their change in tactics. Instead of attacking their goals from a state to state basis, they decided to push for a constitutional amendment. With the full support of women such as Carrie Chapman Catt, Anna Howard Shaw, Alice Paul, in 1919, the 19th Amendment was adopted by Congress.
The 19th Amendment to the Constitution, decrees that all men and women, both black, white and Native Americans, has equal voting rights under the law, it stats that American citizens "shall not be denied or abridged by the United States or by any State on account of sex” (http://teacher.scholastic.com/activities/suffrage/history2.htm: retrieved May 02, 2012).
This victory did by no means mark the end of the battle for the NAWSA;they continued their arduous fight for the rights for children and for equal justice for the blacks and the poor.

The Social Security Act

The Social Security Act was signed into law on August 14, 1935 by President Roosevelt. This is considered to be one of the most monumental achievements of the Great Depression era as it provides the basis for future welfare policies for all level of the government, to this day.
The Social Security Act would bring a sharp end to the American way of life prior to its passing. Americans has always held to the tradition of ‘pulling oneself up by the bootstraps’ and was a believer in volunteering to improve their social issues. There was no assistance, “as such programs as old-age pensions, public assistance, unemployment compensation, or health insurance — except for war veterans, from the federal government” (http://www.u-s-history.com/pages/h1609.html: retrieved May 02, 2012).
The Great Depression is considered to be one of the bleakest times in the nation’s history “that placed millions of Americans out of work and signifies the beginning of government involvement in the economy and in society as a whole” (http://history1900s.about.com/od/1930s/p/greatdepression.htm: retrieved May, 02. 2012). Between 1929 and 1933, the nation saw a dramatic drop in wholesale prices, a 25% increase in unemployment, pay cuts, and an 85% fall in the stock market. On Black Tuesday, October 29, 1929, it all came to a halt with the crash of the Stock Market that marks the beginning of the depression, thus it was dubbed, The Black Tuesday.
The nationwide misery caused by the depression, sparked fervent outcries across the country for old-age pensions. Champion for this charged was led by a retired California doctor, Francis Townsend. In response to this campaign, the Roosevelt administration enacted the Social Security Act of 1935; to be funded by payroll taxes 2. Analyze the impact of the two (2) or more major historical turning points selected on America’s current society, economy, politics, and culture.

The 19th Amendment Impact
Ever since its enactment in 1919, the 19th Amendment has had an enormous impact of the lives of the nation’s women. This can be seen in all sphere of society; it has uplifted the woman’s life politically, economically and culturally. Decades after, it’s still riveting the nation.
Today, not only does women enjoys equal rights to vote, but they are now able to work a real job, vote and run for political office. Today women are head of huge corporations; they are entrepreneurs, teachers, vice president and Secretary of State.
The National Woman Suffrage Association that was founded in 1890 has paved the way for women such as s Nancy Pelosi, Oprah Winfrey, Hillary Clinton, Condoleezza Rice and Michelle Obama for today’s society.

The Social Security Act

The Social Security Act of 1935 is without a doubt one of the most important pieces of legislation in the nation’s history. Enacted as a response to the Great Depression, it has evolved through the years to include programs intended to provide income and services to individual in event of retirement, disability, death or unemployment. There are almost forty percent of Americans that are dependent on these programs to help keep them from going below the poverty line.
To show the economic impact the Social Security has on the nation, research shows that “ if Social Security payments were reduced by only five percent, the nation’s economic output would decrease by $63 billion, 419,000 jobs would be lost and tax revenues would decrease by $7.8 billion” (http://www.dailyyonder.com/economic:-retrieved May 03, 2012). 3. Speculate as to why women earned the right to vote in the frontier states of the West before eastern and southern states.

Wyoming, known as the Equality State, was the first Western state and that of the country, to have acknowledged the woman’s right to vote. Other western states such as Utah, Colorado and Idaho followed; it was not long after the women of the east started to want their rights also.
Women earned the right to vote in the frontier states of the West before eastern and southern states, because the west was frontier land. It was new and just developing without the “cultural norms” of the traditional gender roles. Women were free to chart their own paths. The politicians also played a role as well, by supporting the women movement with the hope of attraction attention and settlers to the west. Unlike the east, women of the west enjoyed more economic and social freedom. There were female business, teachers and writers. Then there were the Mormons, who supported the movement with the hope “that women votes would help tip the balance of powers in their favor in the power struggle with the non-Mormon population” (http://middle.usm.k12.wi.us/faculty/taft/Unit5/westwebquest/womenvote/: retrieved May 02, 2012). The suffrage in the west is one of the most important political challenge fought by the human rights women. 4. ADescribe at least two (2) pieces of legislation in the Roosevelt–Taft–Wilson progressive era years that have influenced the conduct of business to this day and what that influence has been.

The progressive era under Presidents Roosevelt, Taft, Wilson was a period of reforms. Laws were enacted in an attempt to influence the way Americans lived and to safeguard society against social wrongs. The courts were also used to improve the work conditions women and children and also the brutal racial animosity that was prevalent during that period.
During this period, the Keating-Owen Child Labor Act was passed. This law made it illegal for employers to employ children less than 16 years of age; it also establishes a maximum of eight-hour workday.
The Federal Trade Commission was also created during this period. The purpose for the formation of this commission was to ensure and investigate unethical and corrupt business practices. 5. Explain the role that the Spanish American War played in America’s development of an Empire.

The Spanish–American War was a conflict in 1898 between Spain and the United States, was as a result of the America’s intervention in the ongoing Cuban War with the Spanish for their independence. It was believed at the time, that the exposition of the USS Maine in the Havana harbor, that killed 250 American sailors, was the work of sabotage by the Spaniard. The conflict with Spain eventually spread to the Philippines.
The conflict lasted for four months. America, despite not being prepared for a war, was victorious. The Treaty of Paris was signed which granted Independence to Cuba and relinquished most of Spain’s possession to America, including Porto Rico, the Philippines and Guam. Spain in return, received twenty million dollars for its losses.
The end of the war signifies the end of Spain's colonial empire and the marked the beginning of America’s world power. 6. Explain at least two (2) ways in which the boom and bust of the Roaring Twenties followed by the Great Depression affected the federal government’s involvement in the national economy.

The 1920’s or the as it’s called, Roaring Twenties saw an end to the Progressive era. This was a less intrusive period form the government. Times were good, and people were happy.
The 1920’s saw a new culture. Thomas Edison’s invention of the movie film became popular as Hollywood became a dominant force it the culture. As the economy continue to boom, there were religious conflicts, immigration restriction and a sharp increase in racial intolerance.
On October 29, 1929, the robust economy of the Roaring Twenties came to an end with the crash of the Stock market and the Great Depression made its entry.
The depression created great suffering and hardships to millions of Americans especially the poor and the elderly. And in response to the nation’s outcry, the government had to intervene with recovery measures. Two of the most notable steps taken were the creation of the National Recovery Administration (NRA) and the Social Security Act.
The NRA, led by General Hugh Johnson, was created to stop the “cutthroat” competition that was rampant between small and competing business. It would focus on stopping the practice of price slashing, and the lowering of wages, that was impeding the economic recovery. The NRA wound enforces industry standards of Fair-Trade Rules and to oversee industrial compliances and to assist in employees grievances against their employers.
The Social Security Act passed in August of 1935, was created as a safety net for those in financial woes.

References

Grossman, H. B. (2011). A Comparison of the Progressive Era and the Depression Years: Societal Influences on Predictions of the Future of the Library, 1895-1940. Libraries & The Cultural Record, 46(1), 102-128.

Shultz K. M. 2010; History Volume 2,2nd Edition

http://www.archives.gov/education/lessons/woman-suffrage/resolution.html

http://law2.umkc.edu/faculty/projects/ftrials/conlaw/nineteentham.htm

http://www.brynmawr.edu/library/exhibits/suffrage/nawsa.html

http://history1900s.about.com/od/1930s/p/greatdepression.htm

http://www.dailyyonder.com/economic-impact-social-security/2011/12/18/3649

http://middle.usm.k12.wi.us/faculty/taft/Unit5/westwebquest/womenvote/

Similar Documents

Free Essay

Hayek vs Keynes

...government power. And that man is Keynes. As shown in history the theory of the role that government should play in the marketplace from Hayek has been long overlooked. Beginning in the Great Depression era, policy makers in Washington latched on to Keynes’ new theories of stimulating the economy through high levels of government spending. Keynes believed that the government should increase public works projects and stimulus spending which would increase the nation’s aggregate demand, meaning an increase of the total demand for final goods and services. The Great Depression continued on as project after project and program after program failed to yield the results that Keynesians had hoped for. Even when faced with the data that proved the Keynesian theory incorrect, the policy makers argued that spending was just not high enough. On the other side of the argument was Friedrich Hayek, who argued that government planning the economy would never work. As Hayek argued in his book The Fatal Conceit, “the curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” Central planners can try day and night to make the economy work perfectly, but they never have the perfect information that would yield the results they hope for. Hayek knew that increasing government spending only directed resources away from their most useful outlet. Only markets, free of...

Words: 782 - Pages: 4

Free Essay

America in the 1920's

...America in the 1920’s The Boom Period During the 1920s there was a prolonged boom in the American economy. Industrial production doubled, the economy grew rapidly and fortunes were made. Life had never seemed better for the majority of the American people. The boom developed for a number of reasons. World War I The European economies were exhausted by the cost of waging a long war. In comparison, the USA grew rich during the war years. Its late arrival to the war, and the fact that its cities and industries were not bombed or destroyed during the conflict, meant that at the end of the war it was able to capitalise on the perilous state of European industry and dominate their markets. New technologies The first 20 years of the twentieth century saw huge technological advances in industry. Factories became automated. Machines and other improved manufacturing techniques meant that huge amounts of goods could be made at a fraction of the cost. The age of mass production had arrived. In the decade of the 1920s economic output increased by a staggering 50%. Consumer boom Because goods could be produced in greater numbers and at much lower prices, more people were able to afford them. This led to huge increases in the sales of products such as cars, refrigerators, radios and cookers. Buying on credit This consumer boom was greatly aided by the availability of hire purchase - the ability to buy goods on credit. Because times were good, people were not worried about...

Words: 968 - Pages: 4

Premium Essay

The Great Recession

...The Great Recession and the Great Depression John Maynard Keynes wrote in the depths of the Great Depression that, “Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.”1 This acute observation is applicable to our current Great Recession as well. In fact, the newly discredited ideas are not too different from the old, suggesting that Keynes may have overestimated the ability of people to learn from their mistakes. I discuss the parallels between these two watersheds in recent economic history in three steps. The first and most important step is the causes of the crises and their relation to economic theory. The second step is the spread of the crises as they affected the whole world. I close with the final step, recovery—at least as far as we can see it at this point. Marx said famously that history repeats itself, “the first time as tragedy, the second as farce.”2 I argue that this observation also fits our current condition. Both of these dramatic and costly economic crises came from the interaction of economic imbalances in the world economy and the ruling ideology of financial decision makers who confronted these imbalances. The first imbalance came from the First World War. This paroxysm of violence brought the long economic expansion of the nineteenth century to a sudden end. Britain, the workshop of the prewar world, was exhausted by the struggle. America, the rising...

Words: 5245 - Pages: 21

Premium Essay

Depression

.... The Great Depression was a period of unprecedented decline in economic activity. It is generally agreed to have occurred between 1929 and 1939. Although parts of the economy had begun to recover by 1936, high unemployment persisted until the Second World War. Background To Great Depression: * The 1920s witnessed an economic boom in the US (typified by Ford Motor cars, which made a car within the grasp of ordinary workers for the first time). Industrial output expanded very rapidly.  * Sales were often promoted through buying on credit. However, by early 1929, the steam had gone out of the economy and output was beginning to fall. * The stock market had boomed to record levels. Price to earning ratios were above historical averages. * The US Agricultural sector had been in recession for many more years * The UK economy had been experiencing deflation and high unemployment for much of the 1920s. This was mainly due to the cost of the first world war and attempting to rejoin the Gold standard at a pre world war 1 rate. This meant Sterling was overvalued causing lower exports and slower growth. The US tried to help the UK stay in the gold standard. That meant inflating the US economy, which contributed to the credit boom of the 1920s. Causes of Great Depression Stock Market Crash of October 1929 During September and October a few firms posted disappointing results causing share prices to fall. On October 28th (Black Monday), the decline in prices turned...

Words: 2820 - Pages: 12

Free Essay

Student

...the gold standard "caused" the crash and depression of 1929-39 and beyond. But, as Bernanke and Liaquat admit, the central bankers of the post-war period in somes cases (France and the US quite openly and purposefully) "sterilized" their gold so that the money supply did not expand when needed but in fact contracted. So it was a failure to follow the gold standard rather than gold itself which was the culprit. Nor do either Bernanke nor Ahamed explain why the gold standard worked quite well for a century before WW1, although Bernanke admits that is an "unexplained" issue. While acknowledging the long history of the gold standard and its importance in the development of central banking, Ben Bernanke made crystal clear that we're never going back to the gold standard. He explained that the argument supporting the gold standard has two parts: 1) the "desire to maintain the value of the dollar"—implying a "desire to have very low price stability, and 2) an aversion to allowing "the central bank to respond with monetary policy to booms and busts," explaining that "the advocates of the gold standard don't want to give the central bank that power." But regardless of the impetus for these arguments, he explains, a return to the gold standard now "would not be practical for monetary reasons or policy reasons": Bernanke pointed out various reasons that there's simply "not enough gold" to sustain today's global economy. First, extracting gold from the ground is a costly and uncertain endeavor...

Words: 1139 - Pages: 5

Premium Essay

The Stock Market Crash

...THE GREAT DEPRESSION AND THE STOCK MARKET CRASH An Introduction The stock market crash The stock market was created on 1792 to allow stocks and bonds to be traded “bought and sold”. A “stock market crash” is the steep fall of the prices of stocks due to widespread financial panic. America experienced an era of great peace and prosperity during the 1920s. After World War I, the so-called “Roaring Twenties” economic and cultural boom was fueled by industrialization and the popularization of new technologies such as radio and the automobile. Air flight was becoming common as well. The Dow stock average soared throughout the Roaring Twenties and many investors aggressively purchased shares, comforted by the fact that stocks were thought to be extremely safe by most economists due to the country’s powerful economic boom. Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage. For every dollar invested, a margin user would borrow nine dollars worth of stock. The use of leverage meant that if a stock went up 1%, the investor would make 10%. Unfortunately, leverage also works the other way around and amplifies even minor losses. In 1929, the Federal Reserve raised interest rates several times in an attempt to cool the overheated economy and stock market. On Thursday, October 24th 1929, a spate of panic selling occurred as investors began to realize that the stock boom was actually...

Words: 2255 - Pages: 10

Premium Essay

Wall Street Crash

...THE CAUSES AND EFFECTS OF THE WALL STREET CRASH AND THE GREAT DEPRESSION The economic boom of the 1920’s came to a sudden end in October 29, 1929. In June 1929 prices of stocks and shares had reached new highs. The Stock Market seemed to be a quick and easy way to get rich. The Stock Market is the place where stocks are traded. More and more people wanted to ‘play the market’ (Buy and sell stocks). [pic] The Wall Street stock market (located in New York City) was not regulated .Anybody could buy shares and they could be bought ‘on the margin’-This is when the stock broker and the stock holder merge their money to buy stocks, for example, people could buy $1000 worth of stocks for only $100 and borrowed the rest from stockbroker. Buying on the margin became a common practice. People waited for the share prices to go up again and then resold their shares for a profit. It was usually easy to pay back the loan and still make money. The day of the crash: By the summer of 1929 there were 20 million shareholders in America and prices continued to rise. But in October 1929, things began to change. Some people realized that share prices had risen too high and wanted to sell before they fell. THE CAUSES OF THE WALL STREET CRASH 1. OVERPRODUCUCTION- New mass-production methods and mechanization Meant that production of consumer goods had expanded enormously. In fact, there was overproduction (more being made than could be consumed).The market was becoming...

Words: 1348 - Pages: 6

Premium Essay

Great Depression

...Topic: The Great Depression, continued Read: In Fed we Trust, chapters 1-4 1. Define the term gold standard. Should we return to it? The gold specie standard arose from the widespread acceptance of gold as currency. No, The gold standard limited central banks from printing money when economies needed central banks to print money, and limited governments from running deficits when economies needed governments to run deficits. It was a devilish device for turning recessions into depressions. The answer is that some people aren't worried about depressions. Some people are worried about inflation. 2. Who was J. Pierpont Morgan? What was his role in stopping the Panic of 1907? John Pierpont "J. P." Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric. After financing the creation of the Federal Steel Company, he merged in 1901 with the Carnegie Steel Company and several other steel and iron businesses, including Consolidated Steel and Wire Company owned by William Edenborn, to form the United States Steel Corporation. - The Panic of 1907 was a financial crisis that almost crippled the American economy. Major New York banks were on the verge of bankruptcy and there was no mechanism...

Words: 2057 - Pages: 9

Premium Essay

To What Extent Where the Government Policies Responsible for Britain’s Economic Recovery in the 1930’s?

...To what extent where the government policies responsible for Britain’s economic recovery in the 1930’s? It could be argued that the housing boom is responsible for Britain’s economic recovery in the 1930’s as a high proportion of all investment went into housing. They gained an extra 750,000 workers between 1932 and 1934 making it easy to efficiently build houses which lowered the cost of production. However, this factor was only made possible by other aspects such as population movement and low mortgage and interest rates. It is also necessary to include that the housing boom was only made possible by their allied industries such as plumbing, cement and electricity as without these products being readily available the houses could not have been built. As the housing industry boomed it made other industries more successful in trade as the consumption of electricity doubled in the 1930’s and by 1938 there were 9 million wireless sets in private homes and the demand for luxuries such as radios and cars also grew. This benefited the other industries and the working class as more jobs were readily available for them to earn a living and provide for their families. It is clear to see that the housing boom could be seen as being responsible for Britain’s economic recovery in the 1930’s as it gave jobs to the working class which increased consumerism as more and more people had money to buy consumer goods which helped the cycle of prosperity to continue on and helped the economy recover...

Words: 663 - Pages: 3

Free Essay

Peru Boom

...Peru Boom Spurs Growth of Middle Class (Assignment 1) Michael Davis SOC 300 January 3, 2012 Professor Ruben E. Saroukhanian Peru Boom Spurs Growth of Middle Class Peru is a middle country in Latin America; it was not one of the superrich or really poor countries. Now Peru is one the fastest growing Latin countries; in the city of El Salvador which uses to be known for indigenous Peruvians is now a mega city. This city has all the bells and whistle, the main attraction is the Mega Plaza Express shopping center. The Mega Plaza Express shopping center has movies, dinner, lights, electronic stores and much more; the local’s lover the current scene and life the city has now. Over the last couple of years the price of gold and copper has raise and the demand has become very popular with Asian countries. “The Andean country’s gross domestic product rose 6.7 percent year on year in October 2012, marking 38 consecutive months of growth” (Schipani, 2013). Peru growth has notice a letdown in 2010 to 8.8 but that has not stop Peru from becoming one of the top growing Latin American countries. “Sales in 2012 topped $5.3 billion, an increase of 20 percent over the previous year. The increase was due not only to the existence of centers such as Mega Plaza Express” (Schipani, 2013). The Peruvians average $2 dollars a person in his or her pocket has reduced to 28 percent over the last ten years. One of the goals of the Peru President is to reduce/cut poverty to least then 15 percent...

Words: 736 - Pages: 3

Premium Essay

Progressive Era

...(NAWSA), founded in 1890, and the National Women’s Party (NWP), founded in 1913 and led by Alice Paul (Schultz,2012,pg.341-42).   The second major historical turning point in this era I will discuss is the Stock Market Crash of October 1929.   The Stock Market Crash of 1929 devastated the economy and was a key factor in beginning the Great Depression. Analyze the impact of the two (2) or more major historical turning points selected on America’s current society, economy, politics, and culture. The Women’s Suffrage movement had a major impact on society, economy, politics, and culture.   In 1920 the Nineteenth Amendment was passed and women won the right to vote (Schultz, 2012, pg.342).   The enfranchisement of women was the largest expansion of the voting population in American history, significantly increasing the American electorate.   This movement opened many doors for women; they now knew that they had a voice and the right to speak on political issues within the government and allowed them property rights.   The stock market crash of 1929 caused fear and panic throughout the country and resulted in the beginning of the Great Depression.   All aspects of the economy were affected by this downward spiral in the stock market; it caused many banks and businesses to fail and have to fail for bankruptcy.   Unemployment increased, which created a decrease in purchasing power for consumers and that led to businesses having to lower prices on merchandise.   Many laborers were forced...

Words: 3734 - Pages: 15

Free Essay

Week Six Knowledge Check Hrm

...Week 6 Knowledge Check Study Guide Concepts Mastery Score: 9 / 9 100% 100% Questions 1. Diversity in organizations makes good business sense because A. diversity is the new trend B. diverse organizations are popular C. diverse organizations have less legal problems D. a diverse organization can be helpful when expanding into global markets Correct: The Correct Answer is: D. Organizations must be positioned to their global markets. Having employees that are multicultural can assist in working with a diverse network of suppliers, customers, and strategic partners. 2. The demographics of the United States are changing so dramatically that over the coming decades it will be impossible for employers to fill their ranks with members of the traditional workforce, __________. A. white females B. males under forty C. baby boomers D. white males Correct: The Correct Answer is: D. By 2040, an estimated 70% of American workers will be either women or members of other races or nationalities. 3. To manage diversity, you should replace inflexibility and intolerance with A. care and concern B. fear and distance C. adaptability and acceptance D. discipline and segregation Correct: The Correct Answer is: C. Diversity can help organizations expand into global markets; build brand equity; increase consumer purchasing and grow the business; support the organization’s ...

Words: 625 - Pages: 3

Free Essay

Baby Boomer

...A baby boomer is a person who was born during the demographic Post-World War II baby boom between the years 1946 and 1964, according to the U.S. Census Bureau. The term baby boomer is also used in a cultural context. Different groups, organization and individuals may have widely varying opinions on what constitutes a baby boomer. Baby boomers are associated with a rejection or redefinition of traditional values. In Europe and North America boomers are widely associated with privilege, as many grew up in a time of widespread government subsidies in post-war housing and education, and increasing affluence. One feature of boomers was that they tended to think of themselves as a special generation, very different from those that had come before. The phrase baby boom has been used since the late twentieth century to refer to a noticeable temporary increase in the birth rate. According to the Oxford English Dictionary, the first recorded use of “baby boomer” is from 1970 in an article in the Washington Post. Howe, well known for their generational theory , define the social generation of Boomers as the cohorts born from 1943 to 1960, who were too young to have any personal memory of World War II, but old enough to remember the postwar American High. The generation can be segmented into two broadly defined cohorts: The leading-edge baby boomers are individuals born between 1946 and 1955. This group represents slightly more than half of the generation, or roughly 38,002,000 people of...

Words: 1533 - Pages: 7

Premium Essay

Great Depression and Current Crisis

...American history from 1877: How the Great Depression compare to The Current Economic Recession affecting the US American history from 1877: How the Great Depression compare to The Current Economic Recession affecting the US. Introduction In 1929s, a global depression hit countries with market economies. Despite the fact that the Great Depression was moderately gentle in some nations, it had very severe effects on others, especially the America. In the United States, the great depression went down in history as one of the worst economic crisis, which left a deep-seated situation, leading to joblessness, starvation and homelessness for over a decade in the US. The Great Depression in America also led a great global depression, as typically each industrialized economy including Germany, Italy, Japan, Britain, France, and others, was completely destructed. Various economists and the media have often linked the current economic crisis that heightened in 2008 to the great depression which occurred decades ago. Looking at the implications of the great depression and what is happening today, clearly there are several direct similarities between the two economic crises. Through a brief analysis of the two economic scenarios, this paper hence aims to show how they are related. What are the similarities with the current financial crisis? Some of the similarities between today’s economic situation and the Great Depression of 1920s include: High rates of unemployment- Economic forces...

Words: 1216 - Pages: 5

Premium Essay

Analysis: The 2008 Financial Crisis

...Although there are some points of similarity, the 2007-08 financial crisis is not tied to the same narrative as the 1929 Great Depression that Karl Polanyi analysed (1933). However, the most recent financial bust reveals the same incessant pull between proponents of laissez faire and the movement of protection of society as the Great Depression did. Indeed, “the dire consequences of the 2007-08 crisis are a testament to the power of Polanyi’s insights on the perils of the market” (Gemici, 2014, p. 2), in that one finds an adequate explanation to the crisis in Polanyi’s framework of analysis. Through such a theoretical understanding, this paper will show that the boom and bust or bubble and burst cycles of our market economies are not the result...

Words: 1328 - Pages: 6