Wael, Garrett, and Sonya
THE ROARING TWENTIES
The 1920s was a decade of great economic growth and prosperity for many nations, especially the United States. Driven by government growth policies, a boom in the construction industry, and the rapid growth and increasing accessibility of consumer goods such as automobiles and electricity sent the economy of the United States into a skyward climb. The economy had now successfully transformed from a wartime economy bent on production and rationing to a thriving peacetime economy. However, not everything about this seemingly prosperous time in American history was great. The exponential increase in stock prices coupled with an ever-increasing demand for goods and services made for an increasingly unstable and top heavy economy. Despite speculation that the stock market would have to crash eventually, the majority of economists believed that stock prices would continue to rise indefinitely. However, all of the spending and consumerism backfired on the American people when the Stock Market crashed and dozens of banks were forced to close their doors. This day - now infamously known as Black Tuesday - sent the United States and its economy into a tailspin, and the country would not fully recover until after the end of WWII.
Unemployment during the Great Depression
The Great Depression not only occurred in the United States but also throughout the globe, affecting the world economy. Starting at 3.2%, the unemployment rate increased steadily due to the lack of available employment options and the dependency upon the major industries. Once the primary industries struggled there were no options available to workers to find employment elsewhere. Unemployment was a cause of the Great Depression along with the collapse of the stock market, the deflation of prices, and the drought that destroyed the lands. Also, many businesses filed for bankruptcy due to many businessmen panicking and liquidating all their assets which resulted in many without jobs. During this time most women stayed home to tend to the domestic needs of the home so when their husbands lost their jobs, there was no main source of income leaving the family with few resources. In 1933 the unemployment rate reached its highest at 25%.
The Great Depression - Unemployment