Great Recession and Depression

The economy has suffered many issues that were results of the multiple panics that had occurred over time in the United States. The Panic in 1929 had many long-lasting effects that the economy would struggle with for many years. Unemployment levels were at an all-time high. The market crash was fast approaching. In the text by Bernstein he states, “he proportions of the American labor force that was organized in the interwar period, while high by historical standards, was not as high as in other industrialized nations where recovery obtained sooner. These facts leave one unpersuaded that price (and wage) inflexibility explains the longest depression in American economic history (Bernstein 52).  The depression was long lasting with many detrimental effects to society. The depression created a change in consumer demands which later ended up boosting the economy. The War created a bigger spread of economy struggles that was not only in the United States but other countries as well. The housing boom and stock boom both ended roughly due to the wave of the new depression that was occurring. All countries were experiencing similar issues causing deflation and depression in many other places. They were all an effect of one another due to imports, exports, and other international trade.