How the Events of the Roaring Twenties caused the Great Depression
The "Roaring Twenties" represent a positive era in American history sandwiched between two difficult times, World War I and the Great Depression. The "Roaring Twenties" was a period classified by innovation, prosperity, reform, and a thriving economy in America. An explosion of new inventions and technological breakthroughs transformed popular lifestyles. Shorter workweeks and increased wages led to a revolution in communications, transportation and recreation. For the first time in United States history, free time and leisure activities were becoming part of everyday lives. After the signing of the Treaty of Versailles, which officially ended the Great War, the attitude of the American people toward the rest of the world became one of indifference. The American people wanted to distance themselves from Europe and its problems. There was also an atmosphere of reform that was beginning to surround the country (Sullivan, 301). One such reform that had dramatic affects on the western world, was the addition of the 18th amendment to the Constitution. Also, know as the Prohibition Act, the 18th amendment took effect on January 16, 1920 and outlawed the sale or consumption of liquor in the United States. Another reform was the 19th am
In a fury of selling, 16,410,000 shares changed hands. The average price of 50 leading stocks fell 40 points. Billions of dollars had disappeared overnight. By late November, most of the listed stocks were down to a third of their peak value. Banks, once so eager to lend money, now called in their loans in a panic. But people couldn't pay back the loans and many banks were left virtually bankrupt. The Crash of 1929 did not cause the Great Depression. But it brought the curtain down on the "Roaring '20s" and woke Americans up to the tragic economic journey they were only just beginning. Through all of these wonderful events that occurred throughout the twenties, people were led to believe that the world had some how magically rebounded from the troubles of the war. The truth was it had not. Every other foreign nation had dug itself into a deep hole after World War I. The United States had lasted longer than other countries because we had not endured as much damage from the Great War as the others did. The false speculation of the stock market and an unequal distribution of wealth on several levels eventually led to the downfall of the United States. The "Roaring Twenties" set the stage for the stock market crash in 1929, which led further into the Great Depression. The Great Depression was the worst economic slump ever to occur in US history. It lasted for over a decade and had a disastrous affect on the entire industrialized world. After the stock market hit rock bottom in 1929, thousands of people found themselves without a job and unable to feed their families. In 1933, at the height of the depression in America, twenty-five percent of all workers were unemployed. The following year, in 1934, that number decreased very little (Garraty, 78). The Great Depression was not caused by one single event nor was it caused by the stock market crash in 1929, but by a series of events that took place throughout the "Roaring Twenties." Technology was not the only popular item during the glorious "Roaring Twenties." Entertainment was also becoming big. New movies, books, music, and other forms of entertainment were rising onto the national scene during the 1920s. In the movie industry, Hollywood was quickly becoming a dominant force. With stars such as Charlie Chaplin, Hollywood began making over 2,000 movies a year! The movie industry became very popular because it gave Americans a common culture and provided entertainment for all. The "Roaring Twenties" ushered in an age of technological advancement. They were a turning point in American history. New technology was changing the way that Americans lived, it was making life easier, and allowing more time to be spent doing other activities (Garraty, 34). The invention of the automobile had many benefits. The automotive industry created hundreds of jobs for lower class citizens and provided a faster means of transportation for the wealthy. It also gave the economy the boost it needed to provide America with the age of prosperity that the 1920s are known for. The invention of the radio had similar affects on the American culture and economy as the automobile did. The radio t
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Approximate Word count = 2121
Approximate Pages = 8 (250 words per page double spaced)
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