Essay on The Great Depression Of The United States

1767 Words Dec 10th, 2015 8 Pages
Overtime in the U.S., we’ve had two major droughts that have put our country in jeopardy. These events are very relevant and important which are the Great Recession and the Great Depression. Although these elements are different from each other, they’re also similar due to the violence it has developed, the increase of the unemployment rate and so on. But the question is, how are these events similar and different?
The Great Depression started because of a huge crash in the stock market within our society. From 1929-1933 the unemployment rate rose drastically from 3.2% to 25%. Reason being is because the country couldn’t keep up with the production of the full employment of the labor force. The output expected wasn’t reached due to the U.S. not being able to sell enough to attain that amount (The Great Depression of the 1930s and Its Origins). Ongoing, investment purchases also decreased, which was very essential within the Great Depression. Consumer prices also as well because the majority of individuals weren’t spending efficiently as they were the previous years. When someone invests their money into something to make a profit, they expect consumers to purchase the product, unfortunately this didn’t happen. Once investors realized the stats that took place in this time period, investment purchases decreased, which is mainly why the depression developed. These organizations take up an important percentage of the United States output.
Moreover, lets look at what gives…

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