Great Depression In America

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Mike Hall Current World Affairs November 3, 2013 World Depression The Great Depression is seen as a defining moment in American History as it changed the country drastically. Many forget this economic downfall is not limited to the United States, but were felt globally and actually started elsewhere before having a domino effect that encompassed the United States. Most historians and economists believe that the causes of the Great Depression in the United States had many causes only one of which was the Stock Market Crash of 1929.(The Great Depression) The Stock Market Crash can be attributed to many things but the cause that set it all up to fail was the printing of monies by foreign countries during the First World War.…show more content…
Americans entry into WWII gave the economy the final push into recovery that it needed. Massive government spending on war efforts as well as factories being put back in service meant more jobs for the common man and now women too. The unemployment rate, which was just over 17 percent in 1939, dropped to just 9.6 percent in 1941 and 4.7 percent in 1942. (Smiley) Much of this can be attributed to the wartime draft where the number of military service members increased by more than 8.5 million between 1940 and…show more content…
There are several parallels that lead us to believe that history may be repeating itself. Today’s U.S. economy is producing 2.2% more goods output then before the economic recession started in the late 2000’s, but with 3.8% fewer workers. This can be attributed to our modern day recession stimulating huge productivity and efficiency gains as business let mediocre employees go to save on labor costs. They have learned to do more with less. Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs. This will lead to companies not hiring workers and a sluggish job recovery rate. Technology is replacing the uneducated worker at an alarming rate as machines increase labor productivity faster than other areas of the economy can absorb the now surplus of labor. This doesn’t mean we need to slow technology, just that we need to be a more educated society. Another link to the great depression would be the precious metals market. During the great depression, gold prices remained stable, partially due to the gold standard and partially due to the private ownership of gold being made illegal. By contrast today gold market is valuable with the price of gold soaring past the $1300 mark at times. This would lead us to believe that our dollar is inflated and overvalued. A very bad
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