How Did The Stock Market Crash Affect The Economy

These are troubled times. The stock market crash is still affecting the American economy, even now, three years later. In fact, the situation is only getting worse. Stock value keeps falling: it is twenty percent what it was worth before the crash in 1929 ("About the Great Depression”). Banks are failing, and fear of their failure is causing the people to withdrawal their fund, which then causes the actual collapse of the financial institution. Americans are in need of jobs as well. It is estimated twelve to fifteen million of the former workforce is now unemployed ("About the Great Depression"). This is a vicious product of the savings lost when banks shut and the general lack of confidence in the economy ("About the Great Depression"). The people are not spending the …show more content…
This just leads to even less spending. The crash was the catalyst to a brutal cycle, a cycle that needs broken. In order for this to occur, the government must get more involved in the economy. Also, money needs to be channeled into the economy, primarily to the consumers. This will help simulate more job creation, but the government needs to create other jobs as well. Together these three things will help break the cycle in which the United States has been trapped.
Government must now finally become an involved member of the United States’ economy. The laissez-faire attitude of the past will not do. Precedent has already been set with the Sherman Anti-Trust Act. If the federal government has the authority to prevent monopolies in order to secure a better economy, then it has a right to enact other acts to improve this current, struggling economy. First and foremost, the dilemma