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The US Economy in the 1920s, Coursework plan - Coggle Diagram
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Coursework plan
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Effects
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Underlying weaknesses in the American economy were brought to the surface when the stock market could no longer be a façade with the lack of public belief in the continuation of prosperity.
The US banking system was on the brink of collapse - 5,000 went out of business from 1929 - 1932 - having also participated in the stock market.
With such a large population of those in debt, homelessness increased
Unemployment soared, with a large number of Americans becoming ‘hobos’
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Caused a landslide victory for FDR, head of the Democratic Party in 1933 - dramatic change form the previous presidency, Hoover (Republican)
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Point 1 - novelty
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The extent of the crash registers in the history books, so as to sustain the argument for government regulation of the markets. It was the removing of the capitalist’s mask to reveal the greedy and sick brain behind it and the oversized belly after being fed everything it wants.
Point 2 - memory
The sweeping away of prosperity accumulated over a decade could easily be remembered when it had happened over just 5 days.
The following depression created such extremes of poverty in the city which had not been seen for years, and the massive contrast to the previous decade surprise people to no end.
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Point 5 - applicability
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The American stock market crashed in 2020 - Biden referenced the 30 days of FDR’s presidency in his inauguration speech
Applicability
Highly advanced technology is mirrored in today’s century: high amount of people investing in technological developments - bubbles could be created, people are still greedy
The American economic system in the 1920s and the system of the present day are both capitalist The Wall Street crash gives evidence that when a capitalist economy does fail, it can always recover
Prosperity is not a steep upwards curve, but a slow and progressive slope which takes lots of small mistakes to build up a stable level of prosperity which can be sustained . Patience is the optimum ingredient in any economy - there are no quick fixes
1920s consisted of a very divided American society, those who approved of the roaring twenties and those who didn’t. Around the time of his inauguration, Biden spoke about ‘uniting America’ , as he was facing again, an extremely divided America, in that Republicans and Democratics were almost split down the middle. .
Memory
The dramatic drop from prosperity to recession registers in America’s memory,
Quite a typical story, with a supposed ‘sin’ where there was too much greed, and then America pays ‘repentance’, afterwards
The boom was a process of ‘following the leader’. Unsustainable speculation shows the dangers of a capitalist economy
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P1
Novelty
Biggest crash in the history of America, judged by the statistics of losses and the severity of after effects
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Conclusion
WSC is significant, however not to the extent to which it is emphasised. Explain more deeply
Novelty
The economic boom which proceeded into the crash had extremely novel qualities: production, consumerism, investing, etc, but crashes were nothing new to America. However this was he biggest economic crisis in American history at the time
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Identify, explain and evidence the significance.
The economic boom was a façade of a ‘prospering economy’, in front of a system with many weaknesses. After the Wall Street crash took place, America was exposed - economic significance, in the short term
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