The Great Depression: Lessons for Society, Economy, and Government  The Roaring 20s’ Economic Mirage

 




The Roaring 20s was one of the most prosperous times in American History. The Stock Market skyrocketed to the point where even the housemaid held an owner of one of the leading companies. Everybody had a roof, a car, and a radio of the new economic policies like installment plans and buying on margin. Capitalism was at its peak. However, like any roller-coaster, it had to come tumbling down. This downward spiral, also called The Great Depression, is generally coined along with high unemployment rates and people living in destitute conditions. Contrary to seeing the Great Depression in a bad light, it was vital for the improvement of the country socially, economically, and politically. The Great Depression is important as it improved our understanding of the economy, strengthened the federal government, and led to the making of important policies introduced in the New Deal, which are still prevalent today.

If a person does not hold knowledge of the consequences of one’s actions, one is walking with a blind eye. This was the situation in the early 1920s; everybody was following the norm of that time. This norm included buying the latest gadgets to the roof above their heads on credit. According to studies, consumers bought 60 to 75 percent of cars, 80 to 90 percent of furniture, and 80 percent of radios bought on credit. The amount spent on consumer goods had reached up to $ 7 billion dollars. They were indulging in the things they hadn’t worked for.


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The Great Depression: Lessons for Society, Economy, and Government


Even President Herbert Hoover said during his campaigns in 1928, “We in America today are nearer to the final triumph over poverty than ever before in the history of any land. We shall soon, with the help of God, be in sight of the day when poverty will be banished from this nation.” (Herbert Hoover’s 1928 speech accepting the Republican nomination for the presidency). This was referred to as the prosperous times of the 1920s, as the number of millionaires during the peak of the stock market reached from 25,000 to 35,000. It was thought that the fortunate times of the ‘Roaring 20s’ was everlasting, and no sight of poverty would be seen on the face of the Earth.