By: Joel Grosjean
Introduction
After some discussion by my peers, America's economic situation is of great interest and the focus of this paper. An exploration of our current economic state requires a discussion of our history. We will explore the cause of our economic situation beginning with an investigation of pre-WWII. Such a discussion will allow us to compare and contrast the great depression with our current crises.
The Great Depression
The Great Depression of 1929 was arguably the greatest catastrophe to befall the new American country up to that time. It was triggered by the stock market crash known as Black Tuesday. While money is merely perceived worth of objects (a very subjective concept), people become possessive of their wealth during times of economic instability. As shareholder liquidate their investments, the stock market begins to plummet, spawning others to withdraw from their investments. And so, the cycle continues driving the country into economic depression.World War II
WWII was a spark of energy for the depressed economy. Despite the horror of December 7, 1941 (and for the servicemen, the years that followed) It was a chance for the our economy to boom. Our discussion, however, pre-dates December 7, 1941. Our economic recovery began with the lend/lease act of March 1941 (Ebbert, Hall, Beach, 1999). While keeping export goods high, cash revenue flows into the country's economy, and it bolsters the economy - a concept enbodied in the term, Balance of Trade. Consequently, this economic boom would be caused by increasing trade, thus bringing more money to the country. An increase in industry also sparked an increase in industrial demands, thus giving money to companies; and increasing employment, thus giving more money to families. Altogether, this bill (h.r. 1946) abated the downward economic spiral fostered by Black Tuesday. In the end, the United States issued over $45 billion in supplies to aid the Allied cause of which monetary revenue has been received for most, if not the entire, amount (Thinkquest, 1998). Furthermore, our engagement in World War II, following Pearl Harbor, exacerbated our economic recovery: industrial plants caught hold of the war mission. Our own capitalism marked a trend toward making war machines and "efficientize" production.
Cold War
The Cold War posed a unique social/political environment; while being at "war," no troops were deployed for combat nor were warheads exchanged. Undoubtedly fought politically, I believe the Cold War to be a direct and unavoidable consequence of WWII's conclusion: a bipolar international arena without a conclusive hegemon. Nevertheless, the economic advantages of war were present (...not to mention the technological and scientific advantages). Peaceful Prospects
President George H. W. Bush
President Clinton
Operation Iraq Freedom
Compare and Contrast
Use of War
As we see from WWII, war allows for increased spending by the government. While this acts poorly on the national deficit, it brings money into the public sector through increased spending. Such spending is manifested through increased scientific and technological necessity and contractual relations with the manufacturing and service industries. Warfare is a buffer that balances our economy - when social moral is good (like during the Bush and Clinton administrations), peace normally pervades and defense spending is minimal, when social moral is down (like following 9/11), war normally pervades and defense spending is maximized.
American Industry
The American industry is the leading institution allowing us to evade economic corruption. It is a buffer that ballances our economy - when spending is up, the industry is over tasked, when spending is down,
Public Perception
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References
Handy (Jam) Organization, (1942) Close Harmony
Jean Ebbert, Marie-Beth Hall, Edward Latimer Beach
Ebbert, J., Hall, M., & Beach, E. L. (1999) Crossed currents: Navy women in a century of change
Thinkquest, (1998) Lend-Lease Program
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Pictures courtesy of National Archives
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