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How Did The Great Depression Affect The Economy Of The 1920s

1313 Words6 Pages

Eli Robinson
Am Lit 2
3/12/23
1920s Rough Draft
1920s Economics
The value of money has grown over the years but only a century ago many Americans were lacking financially. America’s economy was booming for almost all of the 1920s due to the industrial revolution. Many Americans took advantage of this and placed their money in a recently discovered financial stock market. Stocks were new to the public so many did not fully understand how it worked and this led to the loss of so much money. In the 1920s, some Americans used this time to benefit themselves and then there was the rest of the U.S. who struggled to place their money on more promising innovations. Industrialization, innovation, and stocks were all driving forces of the Roaring 20s …show more content…

“The Great Depression cast a dark shadow over the 20th century”(Robert J. Samuelson). At this time in history, people were not fully understanding how the market worked and this is what led to this huge market crash. The Great Depression is often said to just be the start of the most awful parts of history and so much so it is said to of led to WWll. Robert Samuelson says, “There is no precise definition of a depression; it's a term of art. Generally speaking, it's a broad economic collapse that produces high unemployment from which there is no easy and obvious escape” (Samuelson). Experts know too much now that this could never happen again. The market crash was not completely bad because it also inspired the government to change its rule of power and this change has been seen as for the better for the next 100 years. Improvement is essential to America because without it the nation would have an increasing number of environmental problems due to rapid growth in population. “It couldn't happen again… there were too many economic and regulatory controls”(Samuelson). The government has set rules and created systems to prevent this from happening again. The importance of knowing the past imperfections of history is the greatest way to advance technologically and industrially. If historians look to the past to solve today's problems there would be a …show more content…

“Explorations in Economic History.” Why Do Banks Fail? Evidence from the 1920s, 2002, https://www.sciencedirect.com/science/article/abs/pii/S0014498384710175.
Little, Becky. “Why the Roaring Twenties Left Many Americans Poorer.” History.com, A&E Television Networks, LLC., 2021, https://www.history.com/news/roaring-twenties-labor-great-depression.
“Age of the Automobile” Time-Life [New York]. The Roaring '20s The Decade That Changed America. Time-Life, 2019.
Samuelson, Robert J. “Revisiting the Great Depression.” The Wilson Quarterly (1976-), vol. 36, no. 1, 2012, pp. 36–43. JSTOR, http://www.jstor.org/stable/41484425.
Shiller, Robert J. “Looking Back at the First Roaring Twenties.” The New York Times, The New York Times, 16 April 2021, https://www.nytimes.com/2021/04/16/business/roaring-twenties-stocks.html. ushistory.org. “The Decade That Roared.” ushistory.org,

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