Assignment 9-1 Great Depression II

Since the announcement of the declining United States economy and the second Great Depression Americans have been on edge. The downward spiral that is occurring in our nation is due to the irresponsible spending habits of both consumers and government. When I questioned why we had to learn history in school, I was told that in order to prevent the same events from occurring again we must know how they happened before. In my opinion, we are watching history repeat itself due to many of the same reasons as during the first Great Depression.
During the height of the Great Depression the United States was involved in World War II. The crash of the stock market was due to a drastic change in supply and demand. Mass layoffs in industry jobs forced millions to struggle for survival. The economic downturn that was experienced during the late 1920’s is very similar to what we are living today. Every day the news broadcasts the nationwide struggle. New clips of people standing in mile long lines outside the unemployment departments, the declining stock market, and corporations pleading for bailouts are seen daily. What is the cause for this? First, the expenditures that are being incurred because of the war in Iraq and Afghanistan cost the United States billions of dollars a month. Corruptions of corporate executives which force large corporations into bankruptcy loose trillions in consumer’s money are also a source of the problem. Irresponsible lending practices were adopted by banks and independent lending institutions allowed unqualified individuals to receive loans for homes and cars that they could not afford.
All of these things contribute to the current depression that the United States is in. Another big factor is the United States dependence on foreign oil. Our dependence on foreign goods is a contributing factor to the decline in available jobs. It has become cheaper for many companies to produce goods outside of the United States. How can this problem be fixed? That is question that many ask every day, but the answer is still unknown. Banks must start lending the billions in bailout money they received from government to responsible qualified consumers. Consumers must spend money realistically and act more responsibly for their decisions. All aspects of business must reassess their production processes in order to achieve maximum efficiency. Once consumers have restored faith in the stability of the economy they will return to spending money. This increase in spending will increase the demand for products which will increase the number of jobs. Americans and businesses need to stop turning to government with their hand out and find the independence to survive with what they have.