Analyze The Impact Of Social And Economic Effects On The Economy

It’s obvious to put into perspective of the stock market downfall as a singular element of the Great Depression. Even though the causes included bank failures, economic policies, and reduction of supply production, etc…in addition to the workforce, an economy that was in great condition can still recover from such deflation. Interestingly, before the economic collapse, the wealthiest of Americans possessed about a third of products and resources (U.S. History, 2008). However, it created barriers and limited economic growth. For example, those that obtained great wealth seldom distributed their investments back into the economy because they focused more on large profits. It would have been significant if such investments were carefully dispersed and circulated amongst the middle and lower class individuals. Even though the United States (U.S.) had a fundamental economic structure, the system began to weaken provided that supply and prices were considerable with less demand, numerous unreasonable loans from banks or other sources, and low wages followed by substantial business profits. Likewise, individuals failed to …show more content…
In other words, the government made the effort to minimize their involvement in many issues unless such circumstances will greatly affect the economy. Nonetheless, there’s a message that today’s American people can understand from previous events. Perhaps, the social programs and the financial and economic systems that were produced by the New Deal contributed to economic and financial growth for a while. Significantly, Americans’ confidence and faith in the country was strong against the challenges of another recession. Even though there was a recession in 2008, many Americans recovered some way. For example, Americans had enough to live on emergency funds, family support, and welfare programs that allowed time for