And the current
United States economic situation
What is the Depression? Depression is some thing that is very severe to the economic that downturn that lasts for several years. The last time the U. S economy has experienced a depression was since The Great Depression of 1929, which had lasted for about 10 years. The GDP growth rates were a magnitude not since 1930 of -8.6 percent, 1931 of -6.4 percent, 1932 of -19 percent and in 1933 of -1.3 percent. While the Depression going on the unemployment was 25 percent and wages for people who still had jobs fell almost to 42 percent. The total of the U.S. economic output fell from $103 to $ 55 billion and the world plummeted 65 percent as measured in dollars. The Depression was so aggravated by the poor monetary policy. Instead of pumping money into the economy, and increasing the money supply, the Fed allowed the money supply to fall to at least 30 percent. But the “New Deal” created many government programs to end the Depression, but the government programs could not end it alone. The unemployment remained in the double- until 1942, when the U.S. entry into the World War II that created defense-related jobs. People back then thought they would never see a depression like that again, simply because they felted that the government has learned how to avoid it later down the line. Many of the laws and government agencies were put in place because of The Great Depression with the express purpose of preventing the types of cataclysmic economic pain.
The Great Depression was known as the “Great Slump” which was a dramatic, worldwide economic downturn starting in some countries in 1928. The beginning of the Great Depression is the Untied States has something to do with the stock market that crash on October 29, 1929, which is known as black Tuesday. The depression had devastating effects in both the industrialized countries and those who exported the raw materials. The...