American History 1775-1945

American History 1775-1945

For the great depression journaling summery assignment I chose the radio manufacturing executive.
Pre-Depression Economy:
World War I had ended in November 1918, and the impact of the war on the economic and business scene had been substantial. The war had passed through two phases: the first phase during which the United States functioned as a supplier of goods and services to the Allied European participants, and the second phase in which the United States provided economic assistance and combat troops. Before the war the United States had been relatively detached from the European economy, and London had played the role of international banker. Yet during the war the U.S. role as a supplier of goods was substantial. As a result, in America prices of most goods rose; labor was in short supply; and wages were high. Agricultural exports skyrocketed, and farmers prospered as never before. World War I exhausted people. Grief, loss, and hard work made the people ready for a change. Entertainment soared and morals began to slide. All of these factors covered the inflation that was happening in prices. Worker’s salaries increased but did not match the rate of the price increases and farmers were forced further into debt. National economics also suffered with income taxes being the lowest for those who were the wealthiest. In 1924, immigration became limited, reducing the number of workers in the economy. When the stock market crashed in 1929 all the economy’s weaknesses became clear. This was not, however, the start of the Great Depression but just a signal of its onset.

Economic and Psychological Impact:
The Great Depression most drastically effected national moral by eliminating jobs. In 1929 only three percent of the workforce was unemployed, by 1933 this had reached twenty five percent. Since a quarter of the nation was out of work, people stopped spending money. All durable goods such as automobiles, housing and appliances, didn’t sell and forced...