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Dow Jones Research Paper

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Lately, the economy has been doing well. The Dow Jones Industrial Average (DJIA) and the overall Gross Domestic Product (GDP) have been increasing and the unemployment rate has been decreasing. These indicators show that the economy is growing. However, natural disturbances are not helping the economy. Hurricanes, tropical storms, and wildfires have hit the United States and wiped out homes and businesses. Even though these natural disturbances are destroying major businesses, the economy is still growing. The Dow Jones is one of the most popular ways to see how the stock market is doing. The DJIA contains 30 stocks that are known as the “blue chip stocks”. Examples of these are Apple and Microsoft. By looking at the DJIA, one can see that it has increased substantially in the last two months. At the beginning of September from the end of October, the DJIA rose from $21,987.56 to $23,377.24. In the one-year change, the DJIA has increased by 31%. It continues to increase as shown in the one-year chart. …show more content…

The ideal unemployment rate is 4%, so the current rate is very close at 4.2%. This rate is very low compared to previous years. In 2010, the unemployment rate was an average of 9.6%. The economy is doing very well compared to how it was in 2010. The ideal unemployment rate is 4% because it should not be too high or too low. When the unemployment rate is high and people are unemployed, they are not buying large amounts of products. This causes stores to have a decrease in the amount of costumers and profit. If the unemployment rate is too low, most people would have jobs, and the economy could go into another recession. Since the unemployment rate is 4.2%, the United States is doing well and will hopefully continue to be close to this

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According to Alan Brinkley, “...and in some cities as much as seventy-five percent”(The New Deal, Then and Now). This quote helps show how high the unemployment rate was in some cities and how big of a problem unemployment was. One example of how much the New Deal helped lower the unemployment is from the book, A People's History of the United States. “The New Deal had succeeded in reducing unemployment from 13 million to 9 million”(Zinn 402). This quote shows that the New Deal affected the unemployment rate and lowered it by 4 million.

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This drove prices down, which decreased employment. Increased unemployment decreased consumption, creating a cycle that continued to weaken the structure of the U.S. economy. This cycle had massive effects on the economy, as reduced consumption diminished the monetary supply, leading to a decline in production levels and in GDP. Income inequality also related to issues with U.S. credit

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Some examples are in the year 1934 the rate percentage was 16.0.(Gene Smiley “ Recent Unemployment Rate Estimates for the 1920s and 1930s”) And that is pretty high. True the New Deal helped drop it a little but it just was not enough. And yes I am sure others will still argue and say that at least it dropped.

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Like an investment, the government puts money into society, hoping to get a more substantial amount of money back. But with unemployment low the government is investing money into society and the investments are not paying off. The unemployed (7.8 million people) can’t or won’t pay and middle class doesn’t make an effective salary. If a significant amount of people are not working that means the government is missing out on vital income tax. And the middle class alone can’t fight off the $19.3 trillion dollars of debt.

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Two years later it was still at 14.2 percent which is still very high (Unemployment Statistics). In the past month of January 2017, the average unemployment rate was 4.8 percent which is very low compared to the whopping 14.2 percent after the Second New Deal passed (NCSL Report). Before the 1929 Stock Market Crash the unemployment rate was 3.2% which is even better than the unemployment rate now (Unemployment Statistics). So that means that The New Deal was unsuccessful at bringing down the unemployment percentage back to normal. The unemployment rate being so high meant that there was much poverty.

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This unemployment rate affect many people causing them to lose their job and find new work even though it was hard due to the economy being bad and this makes things get worse and a worse till something comes along and changes the outcomes. Also both of the declines in the economy had warning signs that either the government or people who knew the stock market backwards and forwards knew that something bad was about to happen and there was no way to fix it because it had already gone too far in the hole for them to fix it without having a catastrophe of some sort. Although

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