Economic History Of The United States Essay

There are several events in the history of the United States that shaped the peoples lives in different spheres and still continue to relate to today’s situations. These events changed the ordinary citizen’s life and the whole state as a whole. A perfect example of such event is the Great depression that occurred between 1921 and 1941.The Economic History of the United States is about characteristics of and important developments in the U.S. economy from colonial times to the present (Temin, 2010, p. xx), emphasis is on economic performance and how it was affected by new technologies, the change of size in economic sectors and the effects of legislation and government policy. Following the stock market crash, the worldwide economy plunged into the Great Depression that changed and shaped the economic history of the United States and the world as a whole. The magnitude of its effects were great such that it still influences the present day united states economy and influences the policy decisions made by the experts and economic policy makers. Not only did the U.S. money supply began to contract by one-third but also the decision by the worried congress to raise the income tax rate …show more content…
This was the first time the United States had gone into economic recession. Although United States spent almost two months as GDP was declining, it was not until the Wall Street Crash in October 1929 that the effects of a declining economy were actually felt by the government and the citizens. Then a major worldwide economic downturn followed (Terkel, 1970, p. xx). The market crash marked the start of a decade of high rate of unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement. Actual causes are still uncertain and controversial; however its effect was a sudden drastic and general loss of confidence in the economic