Comparing America’s Economy in the 1920s and the Current Economic Situation Essay

Few periods in the States have influenced the current government structure, size, and miserliness rather than the Roaring Twenties and the undischarged Depression. At the beginning of the 1920s, the couplight-emitting diode States was converting from wartime to peace time economy at the time weapons for World War I were no longer useful. In this decade, the States became the richest nation in the world and a culture of consumerism was born. People spent capital for better roads, tourism, and holiday resorts.Real estates booms send land prices soaring (DeLong, 1997). Looking at technology, it played a vital region in delivering the stinting and cultural goodly times that most of America enjoyed during the 1920s. The elevator cars popularity, construction of roads and highways, poured angelical public entrepots into the economy. This consequented to tremendous sparing prosperity. Technology enhanced communication with the initial public station being established, KDKA, the social class 1922 introduced the first movie made with sound- The jockey singer.It is in this time that the United States became a modern middle-class economy of radios, consumer appliances, automobiles and suburbs. tidy sum production had made the United States the richest golf-club the world had ever seen (DeLong, 1997). The economy immediately seems to negate the glory it received in the 1920s. According to Leonhardt (2010), it produced $ 15 one million million million deserving of goods and services in 2008 in estimates, fashioning it the largest in the world.The US economy yet has shown a downward trend since in 2007, it began to s start significantly mainly be fountain of a real-estate slump and other fiscal problems that has led the economy into a recession. The recession keep up to early 2009, making it the long-term one in decades. August 2009 came with some hope with the Federal Reserve avers policy-making committee express that they conceptualized the rece ssion was ending. The savings bank cautioned that the recovery would be slow and there was a theory that unemployment was to remain high for another class.The year 2010 is seen as the year of severe economic compressing. According to Whitney (2010), reports in the fiscal media believe that the effects of ongoing credit contraction and the massive injection of the central bank liquidity have prevented the collapse of financial markets. A lot is still to be done in order to leverage households and stimulate the general economic activity. The financial crisis has stripped the economy $ 13 trillion in equity and Americans have self-aggrandizing gloomier about the economy and the nations direction over the past few months, although it shows signs of moving to recovery.The country is persistent with high unemployment with ordinary working people chronic to fight to keep their jobs and maintain their exemplar of living. This is a contrast on what was natural event in the 1920s. US h ad transformed in less than a decade to go bad the richest Nation in the world. High carry of $5 a day showed the low unemployment rate that existed. Industries were booming with high net income and numerous companies opened their doors to start operations.The US might be the worlds leading economy, but the current unemployment rates, the enumerate of businesses closing their doors as a result of inability to pay their debts and the constraints the government construction in order to fully fund the budget requirements are overwhelming. The government, the Fed and the entirely economy need to work towards alleviating bottlenecks that cause the economy harm. They need to uphold policies that allow see to it that economy does not slide by to the stagflation condition of the 1970s.