1920s and the Great Depression

Topics: 1920s, Great Depression, Unemployment Pages: 4 (1288 words) Published: May 22, 2013
The 1920’s and Great Depression contrasted each-other in many ways when it came to the economy, social, and politics. In the 1920’s the economy was at its high point. The unemployment rate was below 5% and new inventions were coming out all the time. People could always go out and have a good time whether it was a baseball game or going to the movies. By the end of the 1920’s and into the great depression, people were lucky if you could do these things once a year. During the great depression 30% of people in the United States were without a job and the economy had hit rock bottom.

The economy during the 1920’s was at its high point with new inventions, people could afford everything because of installment plans, and almost everyone was invested in the stock market. In the 1920’s many new things were coming out. Radios allowed people to listen to music or sports games, assembly lines helped to make new products faster and cheaper, Airplanes were being flown from country to country, and Traffic Lights were being used to help control traffic. Even simple things like cheeseburgers or toasters were invented at this time and it was all helping the economy boom. This was also when installment plans came out. Installment plans are credit systems where payment for merchandise/items is made in installments over a pre-approved period of time. Because of this, people could afford everything and pay it back at a later time. Installment plans were especially helpful in purchasing things like the Ford Model T Car. The stock market also played a huge role during this time. People were buying stocks and were almost certainly guaranteed to make more money. Almost everyone at this time was invested in the stock market and some had their whole life savings put into it. It was a get rich quick system that no one expected to fail. They probably should have been a bit more cautious.

The economy during the great depression was completely opposite from the 1920s. The stock...
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