-
The First World War
America was in economic expansion during WWI. Because of the increase in need of factory workers to make ammunition, the labor force grew to 4 million people, and unemployment was low. GDP increased, mainly because of the increased production of war materials. This event started America's increase in military spending. -
The Roaring Twenties
Following WWI, America reached economic peak during the 1920's. Henry Ford's new assembly line production increased both GDP (creating more cars) and the labor force (hired more factory workers, and workers to make roads and gas stations). The car also increased the standard of living for Americans. -
The Great Depression
America fell into a depression because unemployment levels rose to 20%, and GDP decreased. These two economic indicators led to a lower standard of living for all Americans. -
World War II
This was the recovery of the American economy. During the Great Depression, FDR put new regulations in place, which also helped the economy. Ultimately, WW2 pushed the economy into recovery. GDP increased because of the increased need for war products. This alsocreated jobs and lowered the unemployment rate. -
Korean War
America was continuing expansion in the 1950's. Inflation was very low, and GDP increased more because of the Korean war production. This also continued to lower unemployment. Government increased spending for war veterans in order to help them find employment and housing. -
The 1990's
The U.S. economy reached peak in the 1990's. Economic growth slowed down. The growth of GDP slowed, and in 1995, the unemployment rate stopped decreasing. -
9/11
The U.S. economy in 2001 was entering a recession because of the Y2K scare. The theory turned consumers away from the internet companies that had previously enjoyed prosperity. This increased unemployment. The 9/11 attacks forced the stock market to close for four days, further extending the recession. -
Government Shutdown
The government shutdown caused a recession in America. It increased national debt because many fees went uncollected by the government. Unemployment increased because government employees were put on furlough until the government restarted. Now, we are currently in economic recovery from the government shutdown.
