What Happens To The Economy During The Great Depression

Unemployment , considered as an important measure of the economic health of a country, usually takes place because of a combination of factors. With regards to the US , it can be argued that everything began after October 1929 when the Stock Market Crash caused widespread panic in Wall Street. In the years to follow investments dropped and unemployment increased dramatically. President Franklin D. Roosevelt introduced reform measures in order to contrast the negative effects of the Great Depression. However, only after 1939 the economy in the country started to have a boost. Eventually, the US’s entry into World War II in 1941 caused a great demand for American goods while creating more jobs. The US industries started to fully produce again, and this helped decrease the unemployment rate. Between 2007 and 2009 the country faced another economic downturn, the most severe since World War II. Once again, the unemployment rate increased. As a consequence of this recession several programs, such as the Economic Stimulus Act and the Recovery Act, were put in force. …show more content…
A combination of causes contribute to this problem. Surely, changes in technology play a great role in causing short of jobs. As a matter of fact, industries prefer mechanization to labor force, therefore they cut jobs. Another cause of unemployment is that there are so many people in the country who cannot find a job simply because they do not have the skills required for it. Furthermore, because levels of education in the US are low, people find it difficult to match the advancing technological sector. Corruption is also a determining factor. In some companies jobs are offered to unqualified people because of corrupt