The United States economy experienced ups and down in its journey to realize the economic power it enjoys today. After the civil war in the early nineteenth century, the United States’ economy experienced drastic development as a result of urbanization and industrialization. It is evident that United States’ economy embarked on a difficult journey to achieve what it is at the present.
US Economic Growth
Initially, specifically in nineteen twenties after the civil war ended, the United States experienced drastic economic growth. As a result of high supply of resources, United States attracted a lot of investors. Actually, it is during the beginning of the nineteenth century in the history of united stated which registered the highest rate of industrial growth. More well paying jobs were created which increased the income of the citizens. The supplies of electricity as well grew at a very high rate. In fact, before the end of nineteen twenties, almost every house had electricity.
The establishment of enhanced procurement systems like hire purchase enabled the American to purchase expensive products which they might not have been able to buy at once. The United States economy was greatly enhanced by the development of car industries which was among the first industries which lacked in Europe. The high sales by car industry enhanced the growth of the United States economy by over twenty five percent. In fact, by 1929, almost every adult American owned a car.
US Economic Down Turn
The increased rate of industrial growth and high supply of the resources resulted to heavy productions which exceeded the rate of demand within the United States. As a result, much of the industrial products lacked market and thus remained unsold. On the other hand, in order to protect home industries, Europe enacted policies which laid high import duties on American products. These led to a lot of the products been wasted causing heavy losses on the industries. Most investors were forced to close down their investments leading to high rate of unemployment in the United States. Most products kept falling in the stock market as a result.
The United States ministry of finance as well failed to ensure strict control of funds in circulation. Despite the fast growth rate of industrialization and urbanization, the United States ministry of finance failed to establish a central bank to control the operation of other small banks, Wall Streets. When the investors of those Wall Street closed down their businesses, most American lost their money and left without anything to sustain their lives. This signified the start of the great depression which has remained the most severe and long-lasting economic down turn in the United States history.