Comparing America’s Economy in the 1920s and the Current Economic Situation Essay

Few periods in America have influenced the current government structure, size, and scotchal system rather than the Roaring Twenties and the Great Depression. At the get down of the 1920s, the United States was converting from war term to peace time thriftiness at the time weapons for earth War I were no longer useful. In this decade, America became the richest democracy in the world and a culture of consumerism was born. People spent notes for better roads, tourism, and holiday resorts.Real estates booms sent land prices soaring (DeLong, 1997). spirit at technology, it played a vital role in delivering the economic and cultural good times that most of America enjoyed during the 1920s. The automobiles popularity, construction of roads and laid-backways, poured fresh public pedigrees into the economy. This resulted to tremendous economic prosperity. Technology enhanced communication with the first public station organism established, KDKA, the year 1922 introduced the first movie made with sound- The Jazz singer.It is in this time that the United States became a modern middle-class economy of radios, consumer appliances, automobiles and suburbs. Mass employment had made the United States the richest society the world had ever seen (DeLong, 1997). The economy at once seems to negate the glory it received in the 1920s. According to Leonhardt (2010), it produced $ 15 one million million worth of goods and services in 2008 in estimates, make it the largest in the world.The US economy however has shown a downward trend since in 2007, it began to slack off significantly mainly because of a real-estate slump and other financial problems that has lead the economy into a corner. The recession continued up to early 2009, making it the longest one in decades. August 2009 came with some hope with the national Reserve Banks policy-making committee saying that they believed the recession was ending. The bank cautioned that the recovery would be s low and ther e was a misfortune that unemployment was to remain high for another year.The year 2010 is seen as the year of loathsome economic contraction. According to Whitney (2010), reports in the financial media believe that the effects of current credit contraction and the massive injection of the central bank liquidity have prevented the collapse of financial markets. A lot is still to be done in order to leverage households and stimulate the general economic activity. The financial crisis has stripped the economy $ 13 trillion in beauteousness and Americans have grown gloomier about the economy and the nations heed over the past few months, although it shows signs of moving to recovery.The country is persistent with high unemployment with ordinary breaking people continuing to fight to keep their jobs and keep back their standard of living. This is a contrast on what was happening in the 1920s. US had transformed in less than a decade to become the richest commonwealth in the worl d. High pay of $5 a day showed the low unemployment rate that existed. Industries were booming with high profits and numerous companies opened their doors to starting line operations.The US might be the worlds leading economy, entirely the current unemployment rates, the number of businesses closing their doors as a result of unfitness to pay their debts and the constraints the government face in order to fully fund the budget requirements are overwhelming. The government, the Fed and the whole economy need to work towards alleviating bottlenecks that cause the economy harm. They need to uphold policies that will see to it that economy does not run to the stagflation condition of the 1970s.