The Great Depression

The legacy of the Great Depression is seen in that the Americans began to fear for the future and still do today. At the time leading up to the Great Depression, Americans had a very low sense of awareness. When they bought stocks on the margin and only paid 10% of the price of the good, they didn’t understand that they were paying with money that they did not actually have. That is bad because people who sell goods did not have the money they were supposed to have, resulting in less money that could be allocated to labor.

 

The historical meaning of the Great Depression is that it rapidly changed the dynamic of American society forever. For Americans to realize that their methods  were wrong, they had to suffer the immense consequences of unemployment and uncertainty. Such methods including over producing goods even when World War 1 ended. Americans no longer needed the large amount of goods, but they were produced anyway.This poorly designed plan led to the underconsumption of goods.

 

Moreover, desperate to aid domestic farmers, the government implemented the Smoot-Hawley Tariff to discourage trade with foreign nations. While the tariff seemed like a good idea at the time, it became much more than what it set out to be-representing the American people. They thought they were living within their means and this led to internal collapse. This policy led to decreased trade which resulted in waning foreign relations. When America transformed into this fast-moving individualistic phenomenon, a collapse so great would ensue.

 

On a broader scale, society simply did not understand that its actions could negative consequences later on. There were multiple causes of the Great Depression from many differing ends of the economic spectrum.

 

We see this today in the presidential election. They fear what the presidential candidates will bring to them. They understand the whole scope of the situation. For example, if Americans elect Donald Trump, they understand that he is attempting to make America great again. They also understand that he plans to build a great wall dividing America and Mexico. If they like one aspect and dislike another, then they really have to think if they want the candidate for the longer term. There is the fear of making an incorrect decision. If a different candidate is chosen, Trump supporters want to be able to say they made the correct decision while the rest of society failed.

 

The Great Depression was so important because of the new mindset it instilled in America. The government was to play a larger role in monitoring its people. If people found themselves struggling, the government was tasked with doing whatever it could in its power, usually monetary transactions, to aid its citizens.

 

We see this in its name- it is not just some ordinary event. It deserves the magnitude that it has received because of the importance of an economical meltdown. This furthered underscored the importance of the economy. Economies drive society- people cannot live without them. We have seen this dependency countless times. Under the Keynes economic structure, companies can go to the federal reserve to obtain the money needed to stay in business. Americans are performing all actions, desperately attempting to prevent another Great Depression.