Impact of the Great Depression The Forgotten Man: A New History of the Great Depression, written by Amity Shlaes, gives a lengthy detail of the Great Depression. According to her viewpoint the government handled the situation of the economic crisis very poorly, which led to the Great Depression lasting longer than it suppose to. In this book, Shlaes wrote about observed action taken by Calvin Coolidge, Herbert Hoover and Franklin D. Roosevelt. She gave a detail of the years from 1927 to 1940 and in the beginning of every chapter she mentioned the unemployment rate and the average of Dew Jones Industry. According to Shleas, the Great Depression had major impacts on America life, American values and American Government.
The charge about the old days of the American economy—the nineteenth century, the “Gilded Age,” the era of the “robber barons”—was that it was always beset by a cycle of boom and bust. Whatever nice runs of expansion and opportunity that did come, they always seemed to be coupled with a pretty cataclysmic depression right around the corner. Boom and bust, boom and bust—this was the necessary pattern of the American economy in its primitive state. In the US, in the modern era, all this was smoothed out. There were busts, above all the Great Depression, but these represented the last gasp of the old order.
The Second Industrial Revolution, known as the Technological Revolution, was described by Mark Twain as the “Gilded Age.” This was a time of rapid industrialization during the last 30 years of the 19th century through the beginning of the 20th century. While it brought changes to the workplace and transportation, the lives of the majority of society were not affected as positively as they had been during the first industrial revolution. It was a time of corruption and crime, hidden behind growth and prosperity. Among the wealthy and powerful of this “Gilded Age” were Carnegie, Vanderbilt and Rockefeller. Vanderbilt made a fortune by revolutionizing the railroads.
Within one year alone, the maquiladora program expanded by 30%, opened 3,000 new factories and created approximately 1 million new jobs (Cooney, 2001, p.55). Scholars identify two significant factors that caused the growth in export-oriented industries during this period. The first, as identified by Toledo (2007), Cooney (2001) and Billes (2003), is the collapse of the Mexican peso in December of 1994 that precipitated the country’s worst economic crisis since the 1930s. The peso’s devaluation (the fall in the peso’s exchange rate) had several adverse impacts on the Mexican economy. During this period, Mexico experienced negative rates of growth, a wave of bankruptcies from its domestic manufacturing sector, staggering unemployment rates and a significant decline in real wages (Cooney, 2001, p.55).
“When one realizes the thousands of internal tariffs that obstructed traffic in Germany up to 1834 and the innumerable tolls and charges that hindered trade in France before 1789” (doc 9). This explains how England instead of others countries reached the Industrial Revolution first. As a result of other countries hardships, England took advantage of its resources and became the first country to reach Industrial
Following the great depression, because of an irate population, the government shifted away from backing the top 1%. Franklin Roosevelt’s “New Deal” looked to build the lower and middle class from the ground up and “end the days when government automatically sided with the corporate elite” (McQuaig & Brooks, 2010, p.53). From 1935-1945, Roosevelt strengthened workers’ collective bargaining rights and raised wages in the industrial sector. Across this same time frame, unionization rates nearly tripled, from 12% to 35% (McQuaig & Brooks, 2010, p.53). The Roosevelt administration changes issued in an era of prosperity unseen in America for the middle and lower classes.
What is that you may ask, well I got an answer for you. A Recession is a period of general economic decline, defined usually as a contraction in the Great Depression for six months (two consecutive quarters) or longer. Marked by high unemployment, stagnant wages, and fall in retail sales, a recession generally
Considering the recession that was said to be the reason for the widening gap between the poor and rich, it seems that the ones more affected were the poor. The top 1%, although they are experiencing some changes due to recession, it still did not led them to experience what the remaining percentage of the population are enduring, and as what was shown, they just got wealthier throughout the past
The UXL Encyclopedia of U.S. History talks about that time period by saying “The novel reflects the outward glitter and the inward corruption of the Roaring Twenties , also known as the Jazz Age, a decade of prosperity and excess that began soon after the end of World War I (1914–18) in 1918 and ended with the 1929 stock-market crash”(656). This included women wanting to work and be more equal and men who came back from the war just wanted to forget everything. F. Scott Fitzgerald was an author in the “Twenties” and lived a very typical lifestyle at the time. Through his book, “Great Gatsby”, you really get the taste of the era. The analysis of the book through his language, characters and events, it shows how his life was and how people acted at the time.