Karen Hernandez
Ruben Romero
Christian Pearson Lee
Isaiah Odom
Introduction
Throughout history there has been major and minor economic growth and economic failure in our country. We can refer to these times as “boom” and “bust” periods. “Boom” being the period of time when everything was at its highest and “bust” being when everything was at its lowest. So far our country has had two major experiences with both growth and failure in the country’s economy. The “boom” and “bust” from 1920-1930’s and the “boom” and “bust” of pre-2008 and post 2008.
The “boom and bust” from 1920-1930’s is known as the great depression which lasted from approximately 1930-1940 preceding WW2 and has been the worst economic crisis in this country’s history. The great depression shows us how far the country and the world’s economy can decline in a short amount of time. Those who were present during this time may still recall the feeling of desperation they suffered throughout this period of their lives however studies show that the great depression happened due to how good the economy was and how people took it for granted.
The roaring 20’s was a decade of amazing economic growth and widespread prosperity. New technology happened during this time including evolvement of the radio, television, automobiles, and electricity. This country was doing excellent in every aspect you can think of. Apart from technology several acts were also happening during this time. Women were fighting for their rights to vote and the prohibition of alcohol was taking place. A lot of development happened during this time but it soon abrupted to a halt all too soon.
The roaring 20’s turned into the great depression mostly because of the stock market crash that happened in late October of 1929. The more the stock market grew the more people were eager to pour money into it. When the market crashed, people were forced to pay up on stocks that were no longer worth anything. People had to go to banks and ask for loans but when they couldn’t pay back their loans banks were left with problems. Banks went bankrupt or out of business which led to the banking systems almost completely shutting down.
The president during this time, Herbert Hoover, did not do anything and refused to provide any direct relief to the country. The country was desperate for the economy to get better and when Franklin D Roosevelt took office the country began its long, slow recovery process. Mr. Roosevelt’s new deal policies were part of this recovery. The new deal was a series of economic policies that took action for the purpose of relief, recovery, and reform of this nation. Some of these policies included the emergency banking act that helped banks and led to FDIC (Federal deposit insurance company), securities and exchange commission which policed stock market, agricultural adjustment act which was a government act that rewarded farmers for their reduction in crops causing higher prices and greater money for farmers, the conversation corps and public works act that was in charge of construction projects which gave people jobs.
Even with all these policies many people argued and were against this type of help. They did not like the idea of this country becoming a welfare country. Even though many people were against this type of help they didn’t have any other choice than to accept the governments support. Little by little the country’s economy got better and the country got out of the depression thanks to Mr. Roosevelt and presidents that took office after him.
After the great depression and getting better from the economic crisis the country’s economy was doing well. The country was careful not to jeopardize the economy and everything was fairly good up until 2008. The “boom and bust” of pre-2008 and post 2008 is known as the great recession. It is the longest economic crisis this country has had since the great depression which has affected this country to this day. People still feel desperate and want the economy to be better so they won’t have to suffer. Our interviewees share those feelings when we were with them. If you ask any adult right now about the recession they will tell you that it has affected them and is still affecting them right now. Some people might have been more affected than others and some might even be all right now economically wise but it has taken time and patience for this to happen. The recession happened because of our past president George W Bush. He gave banks to much power and control of everyone’s money which resulted in negative results to everyone in this nation. Our interviewees are Rufino Romero and Brandy Lee are both parents and have suffered differently during the recession. These people are only 2 people out of who knows how many people in the country. Everyone has suffered during the recession but some more than others and each person has had their sufferings differently than others.
Rufino Romero
I first started realizing that we were slipping into a recession when the job percentage started going down and everything from gas to milk was costing more and more money. The reason for this I think was the war in Iraq and president Bush who let this country fall apart but he is not the only one to blame we Americans are to blame as well. Before 2008 there were jobs and not that many houses being lost but sometime during 2008 all you would see around you was the price of everything go up .I worked as a chef at the cafeterias in a government building known as Franchise Tax Board or FTB for short. My paycheck was reduced and my hours were cut. Jobs were going down and the whole country suffered as a result of it. I noticed more and more people being laid off at FTB every day, friends, customers and people that would seem like family even people that worked there for more than 40 years. I saw them cry because the job they previously had was all they knew how to do they couldn't find another job mainly because there was none. Less people were spending on food and we suffered as a result of it. We used to sell up to 115 specials of our food but now we were lucky enough to sell 35 specials. I used to be able to take my family out to a restaurant or buy my kids a video game or a toy every now and then but now all my paychecks are used to pay rent and buy groceries. We had no money for new shoes or new clothes. We shopped at thrift stores and flea markets. I have diabetes, high cholesterol and sometimes I would get really depressed just wanting to forget everything and pretend everything was ok even though it really wasn’t. I was not prepared for this frankly I don't think anyone was it was like a sleeping volcano that was still active and no one was expecting it to explode. I personally don't think I was able to overcome the recession. I lost my job which I had for 6 years and I still feel like I'm in the recession because no one is hiring chefs right now. I believe that the U.S will pull through these hard times because it has always been a strong nation and we will return to are former glory.
Brandy Lee
My name is Brandy Lee; in 2002 my family and I bought our first house. It had a big backyard and was one block from my boy’s school. We were doing well and our combined income was of $65,000 a year. It was pretty good back then, but we were new to buying a home and we didn’t know about loans. We bought our home for $225,000 and our payment was $900 a month. What we didn’t know was that our loan interest wasn’t fixed and it rose unexpectedly which put our payment at $1,700. In ‘08 my job closed down, which cut $25,000 from our income. Their father’s job slowed down because of the housing market slowing down and people stopped building houses. So we decided to put our house for sell, but it was only worth $125,000. We lost $100,000 from selling our house. The house was our nest egg and now it was gone. In ‘09 I short sold the house for $75,000. My children lost their home and we lost our good credit.
Afterword
Even though we are past the Great Depression and we are coming out of the current recession there is no definite answer that something like this is not going to happen again. These 2 events have played a major role in the country’s history and in our lives. Both events have their similarities and differences but it has had the same effect on people. True that the great depression was severer than the current recession but they both affected people the same way. Everyone felt scared and desperate for the economy to get better not to mention there were no secure jobs at this time and pay was really low in both occasions. Everyone wonders how did these events happen? Well the answer is that we made it happen. We want to be good economically wise all the time which results in poor actions and judgments for ourselves and others. People don’t realize the effects of something until it’s too late. Now what comes after? Well again we can only hope for the better and be more careful of our actions. Looking back at our country’s history we can expect that we will be enjoying a “boom” sometime soon. We are suffering from the current “bust” but we will soon be in a “boom” after a while. Hopefully this country learns from past mistakes and gets better and better and not worse and worse.
Ruben Romero
Christian Pearson Lee
Isaiah Odom
Introduction
Throughout history there has been major and minor economic growth and economic failure in our country. We can refer to these times as “boom” and “bust” periods. “Boom” being the period of time when everything was at its highest and “bust” being when everything was at its lowest. So far our country has had two major experiences with both growth and failure in the country’s economy. The “boom” and “bust” from 1920-1930’s and the “boom” and “bust” of pre-2008 and post 2008.
The “boom and bust” from 1920-1930’s is known as the great depression which lasted from approximately 1930-1940 preceding WW2 and has been the worst economic crisis in this country’s history. The great depression shows us how far the country and the world’s economy can decline in a short amount of time. Those who were present during this time may still recall the feeling of desperation they suffered throughout this period of their lives however studies show that the great depression happened due to how good the economy was and how people took it for granted.
The roaring 20’s was a decade of amazing economic growth and widespread prosperity. New technology happened during this time including evolvement of the radio, television, automobiles, and electricity. This country was doing excellent in every aspect you can think of. Apart from technology several acts were also happening during this time. Women were fighting for their rights to vote and the prohibition of alcohol was taking place. A lot of development happened during this time but it soon abrupted to a halt all too soon.
The roaring 20’s turned into the great depression mostly because of the stock market crash that happened in late October of 1929. The more the stock market grew the more people were eager to pour money into it. When the market crashed, people were forced to pay up on stocks that were no longer worth anything. People had to go to banks and ask for loans but when they couldn’t pay back their loans banks were left with problems. Banks went bankrupt or out of business which led to the banking systems almost completely shutting down.
The president during this time, Herbert Hoover, did not do anything and refused to provide any direct relief to the country. The country was desperate for the economy to get better and when Franklin D Roosevelt took office the country began its long, slow recovery process. Mr. Roosevelt’s new deal policies were part of this recovery. The new deal was a series of economic policies that took action for the purpose of relief, recovery, and reform of this nation. Some of these policies included the emergency banking act that helped banks and led to FDIC (Federal deposit insurance company), securities and exchange commission which policed stock market, agricultural adjustment act which was a government act that rewarded farmers for their reduction in crops causing higher prices and greater money for farmers, the conversation corps and public works act that was in charge of construction projects which gave people jobs.
Even with all these policies many people argued and were against this type of help. They did not like the idea of this country becoming a welfare country. Even though many people were against this type of help they didn’t have any other choice than to accept the governments support. Little by little the country’s economy got better and the country got out of the depression thanks to Mr. Roosevelt and presidents that took office after him.
After the great depression and getting better from the economic crisis the country’s economy was doing well. The country was careful not to jeopardize the economy and everything was fairly good up until 2008. The “boom and bust” of pre-2008 and post 2008 is known as the great recession. It is the longest economic crisis this country has had since the great depression which has affected this country to this day. People still feel desperate and want the economy to be better so they won’t have to suffer. Our interviewees share those feelings when we were with them. If you ask any adult right now about the recession they will tell you that it has affected them and is still affecting them right now. Some people might have been more affected than others and some might even be all right now economically wise but it has taken time and patience for this to happen. The recession happened because of our past president George W Bush. He gave banks to much power and control of everyone’s money which resulted in negative results to everyone in this nation. Our interviewees are Rufino Romero and Brandy Lee are both parents and have suffered differently during the recession. These people are only 2 people out of who knows how many people in the country. Everyone has suffered during the recession but some more than others and each person has had their sufferings differently than others.
Rufino Romero
I first started realizing that we were slipping into a recession when the job percentage started going down and everything from gas to milk was costing more and more money. The reason for this I think was the war in Iraq and president Bush who let this country fall apart but he is not the only one to blame we Americans are to blame as well. Before 2008 there were jobs and not that many houses being lost but sometime during 2008 all you would see around you was the price of everything go up .I worked as a chef at the cafeterias in a government building known as Franchise Tax Board or FTB for short. My paycheck was reduced and my hours were cut. Jobs were going down and the whole country suffered as a result of it. I noticed more and more people being laid off at FTB every day, friends, customers and people that would seem like family even people that worked there for more than 40 years. I saw them cry because the job they previously had was all they knew how to do they couldn't find another job mainly because there was none. Less people were spending on food and we suffered as a result of it. We used to sell up to 115 specials of our food but now we were lucky enough to sell 35 specials. I used to be able to take my family out to a restaurant or buy my kids a video game or a toy every now and then but now all my paychecks are used to pay rent and buy groceries. We had no money for new shoes or new clothes. We shopped at thrift stores and flea markets. I have diabetes, high cholesterol and sometimes I would get really depressed just wanting to forget everything and pretend everything was ok even though it really wasn’t. I was not prepared for this frankly I don't think anyone was it was like a sleeping volcano that was still active and no one was expecting it to explode. I personally don't think I was able to overcome the recession. I lost my job which I had for 6 years and I still feel like I'm in the recession because no one is hiring chefs right now. I believe that the U.S will pull through these hard times because it has always been a strong nation and we will return to are former glory.
Brandy Lee
My name is Brandy Lee; in 2002 my family and I bought our first house. It had a big backyard and was one block from my boy’s school. We were doing well and our combined income was of $65,000 a year. It was pretty good back then, but we were new to buying a home and we didn’t know about loans. We bought our home for $225,000 and our payment was $900 a month. What we didn’t know was that our loan interest wasn’t fixed and it rose unexpectedly which put our payment at $1,700. In ‘08 my job closed down, which cut $25,000 from our income. Their father’s job slowed down because of the housing market slowing down and people stopped building houses. So we decided to put our house for sell, but it was only worth $125,000. We lost $100,000 from selling our house. The house was our nest egg and now it was gone. In ‘09 I short sold the house for $75,000. My children lost their home and we lost our good credit.
Afterword
Even though we are past the Great Depression and we are coming out of the current recession there is no definite answer that something like this is not going to happen again. These 2 events have played a major role in the country’s history and in our lives. Both events have their similarities and differences but it has had the same effect on people. True that the great depression was severer than the current recession but they both affected people the same way. Everyone felt scared and desperate for the economy to get better not to mention there were no secure jobs at this time and pay was really low in both occasions. Everyone wonders how did these events happen? Well the answer is that we made it happen. We want to be good economically wise all the time which results in poor actions and judgments for ourselves and others. People don’t realize the effects of something until it’s too late. Now what comes after? Well again we can only hope for the better and be more careful of our actions. Looking back at our country’s history we can expect that we will be enjoying a “boom” sometime soon. We are suffering from the current “bust” but we will soon be in a “boom” after a while. Hopefully this country learns from past mistakes and gets better and better and not worse and worse.