In the 1920s, America’s economic development experienced an unbalanced growth. The economy experienced an imbalance as those who owned large companies and business organizations continued to make large profits (Ivanova, 2017). In contrast, those who worked for them continued with a poor economic run. During this time, most Americans lived below the poverty line as the growth, though viewed as doing good by the business owners, was actually on the limbs of collapse from the scholar’s views (Ivanova, 2017). The period marked the infrastructural development in America, including the rail development.
Further, in the same decade, the demands shifted, and people wanted cars and other travel mechanisms easily. As a result, more road was developed in the suburban areas to enhance movement. At the same time, communication became a valued aspect of the development. Thus, this period was marked by inventions and innovations, including the radio. However, those living below the poverty line could not afford what the rich viewed as basics. Therefore, money was unevenly distributed between the rich and the poor.
The imbalance in wealth was viewed by scholars to have existed due to the unequal distribution of the mode of exchange between individuals. The rich and the middle class enjoyed control over the poor and the low class in monetary distribution. As a result, the economy did not grow uniformly as it might have been expected. However, some scholars argued that the 1920 uneven economic development was more of a theory than a reality. The scholars argue that even when parity existed between the classes, most people still lived at the poverty line. Therefore, the scholars believed that the economy was doing bad and not good as the others claimed.
The period marked a mixed growth in the development of the nation. America gained and lost in equal measures in one way or the other. On the gains, the Americans made great steps to achieve technological advancement development. During this time, the radio industry as a form of mass communication spread quickly. Most people relied on the radio to get the news of the happenings of the First World War (Starkey, 2017). The poverty level increased as money was concentrated in the hands of individuals and companies. The increase in poverty led to increased crime rates as the poor attacked the rich to have their way out. Further, the borrowing level of the population grew. Most people borrowed to meet the lifestyle cost, which had risen above those living below the poverty index.
Radio technology became an integral aspect of the growth of most of these industries during this period. Most American families had acquired radio gadgets, and most business owners relied on the same to advertise their products. The other role of the radio was experienced during the war. During the period, the radio acted as an informative agent to the people of America. Further, the technological advancement in the mass communication sector helped develop the aspect of a global community at that time. People could understand what was happening around them more efficiently. The federal government further played a role in developing radio technology by easing taxes on radio production.
The culture of the American people had an impact on consumption. Generally, culture influences people’s perspectives toward certain goods and services—the aspects of age, gender, and location influence people’s ability to purchase certain products. For example, the reduction in the levy charged on technological advancement was much lesser than that tax placed on the agricultural aspect of the economy. The variation in tax created a competition between technology development and agricultural advancement. Most people, therefore, resorted to doing radio technology than Agriculture. Some culture dictates what good to consume by the people practicing it. Therefore, culture affects consumption in one way or the other.
During the period, the American people underwent the great depression. The people suffered due to the collapse of the bigger businesses, and the unemployment ratio went high; the disposable income dropped to a great extent. The trauma manifested itself in four different phases. First, the reduction in the stock market is viewed as a greater player in the life of the individuals. Most people trading in the stock market experienced a great loss due to the impact of the first world war. This phase was termed the easy money phase as the lending rate was increased by the government and followed by a sharp fall in demand.
The second phase of the depression was the anti-adjustment policy. The unemployment issues in America marked the period. The third phase of the depression was the FDR intervention. The time was marked by attempts to save the economy from collapsing due to unemployment and low money supply. However, the criteria used to sustain the same did not work properly, thus causing the people to suffer more. The last phase of depression involved attempts to interfere with the labor laws. The laws were to protect the workers. However, few individuals wanted to use the same to promote their needs in the job market. As a result, people continued to undergo mistreatment from employers at the workplace without voicing their needs.
The depression had a cultural effect on the life of the people. The practice by individuals greatly influenced the outcome of the issues. Therefore, the depression wouldn’t have lasted if some cultural practices had not been upheld. For example, the rich continued to exploit the poor despite several attempts to stop the same. Therefore, to a large extent, there was a missing link. However, the depression was countered by economic and political interventions (Hall, 2020). The interventions aim to lower the cost of living, create employment, and balance the gap between the rich and the poor.
In an attempt to meet the above aims of the intervention, there is both long and short-range effect on the economy. The introduced reforms did not take effect immediately, raising concerns over the workability of the whole idea. Further, the matter was viewed as political, and thus, most players in the economic sector ignored the larger contribution by those who were not politically active. Thus, the deal failed to cure the issues at hand. On a short-term basis, the deal helped the banking sector reduce the burden of borrowing on the greater economy.
The new deal, however, had its legacies to point at. First, the bill introduced the fiscal policy, which ensured the fiscal operation of the economy was available (Hall, 2020). The fiscal policy ensured that the people had monetary support and such. Secondly, the deal introduced reforms in the banking sector. The amendments helped reduce the borrowing percentage, thus enabling more borrowing from the businesspeople. The reform’s effect was an increase in the flow of money in supply, thus a regrowth in the production ratio.
References
Hall, P. A. (2020). The political power of economic ideas. Princeton University Press.
Ivanova, M. N. (2017). Profit growth in boom and bust: The great recession and the great depression in comparative perspective. Industrial and Corporate Change, 26(1), 1-20.
Starkey, G. (2017). Radio: The resilient medium in today’s increasingly diverse multiplatform media environment. Convergence, 23(6), 660-670.