Ever wonder how the economy – one of the most resilient consistencies in our world – has changed over the years? Let’s look closer at each decade and how the economy adapted to various global events.
The 1930s
The stock market crash of 1929 is generally regarded as the cause of the Great Depression, but it was just one indication that the Roaring Twenties were coming to an end.
When Franklin Roosevelt became president in 1933, there were a lot of unemployed people. Farm prices had gone down, and stock prices dropped to about one-fifth of what they were before the crash. Consumer confidence was low, and demand for things went down too. The manufacturing output went way down too.
The 1940s
The GI Bill, passed in 1944, made it possible for millions of returning veterans to go to college and buy homes. They helped the economy get better by buying things. It also helped Europe get better after World War 2 by giving money and helping create the World Bank, International Monetary Fund, and more.
The 1950s to 1960s
During the Cold War with the Soviet Union, many people in America were very rich. They wanted things that were made in America, such as cars and metal.
John F. Kennedy was the president who came into office and promised to grow the economy. However, he died before he saw any of his economic policies come to fruition. Throughout the 1960s, there were more expensive imports, inexpensive exports, and a rise in unemployment. But social programs such as Medicare helped the economy grow a little bit more.
The 1970s to 1980s
The major problem in the 1970s was oil. The price of a barrel of oil rose from $3 to $12, causing gas prices and inflation to rise dramatically. In 1982, business failures reached an all-time high since the Great Depression as a result of competition from Japan and Germany, a reduction in manufacturing, and the closing of factories.
The 1990s to Today
The rapid development of the Internet economy took off in the mid-to-late 1990s, but this bubble proved to be unsustainable. Between 2002 and 2007, inflation was unusually low, and houses were being purchased with subprime loans. Then, in 2008, housing values plummeted, and the bottom dropped out. Banks and other financial institutions went bankrupt, necessitating a bailout from the government.