Characterize the general economic conditions in the united states during the decades of the 1920s and 1930?

The 1920s was a decade of hope for the Americans.  During this period, the standard of living improved as automobiles, trains and other new modes of affordable transportation gave rise to the suburbs.  People were more relaxed and wanted to enjoy life as the economy was doing well during the early years of this decade.  In the 1930s, people were still reeling from the effects of the Great Depression as many were unemployed due to the closure of businesses and factories.  As a result government expanded its programs and policies to resolve the situation by establishing various programs to reform the economy.

The 1920's was characterized as a decade of economic prosperity for Americans. Many American citizens invested their money in the Stock Market and were able to make a significant profit of their investments. The Stock Market success resulted in millions of Americans buying stock on margin. Buying on margin allowed individuals to put 10% of the price of a stock as a down payment while borrowing 90% of the value of the stock from the bank. Banks at this time had thousands, possible millions, of these types of loans available for citizens. This system allowed citizens to have more currency on them, resulting in them spending it on luxury items like stoves, cars, ovens, etc.

The behaviors of individuals in the 1920's lead to the Great Depression of the 1930's. When the Stock Market crashed in October of 1929, millions of Americans lost a significant amount of money. Some even lost their life savings. This lead to the biggest economic depression in American history. At one point, roughly 25% of all Americans were unemployed. In order to combat the Great Depression, newly elected president Franklin D. Roosevelt implemented his New Deal policies, which created millions of government jobs for individuals across America.

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