Category: Great Depression

Introduction

The Modernism movement started within the Twentieth Century. It is seen as being a more logical approach to the purpose of the building as well as utilizing new materials (History.com, 2019). Architect Louis Sullivan view was that “form follows function”, which means designing a building that has the essentials needs (Wiki, 2019)

This essay aims to investigate what Skyscrapers resembled during the ’20s-’30s compared to now and seeing if the Modernist style has advanced throughout the years. As well as understanding how such large skyscrapers such as the Empire State and Chrysler Building were able to be built within the Great Depression.

A Brief Description of The Great Depression

The Great Depression occurred between 1929-1939 when the stock market crashed. This was the worst economic downfall in America causing 15 million individuals jobless by 1933. Contrasted with the beginning of the twenties when everyone from the rich to the average citizen were buying stocks and making the stock market rapidly grow. large number of redundancies in 1929, not as many people had the spare money to buy stocks creating inflation in stock prices is worth more than they actually were (History.com, 2019).

Even in the midsts of The Great Depression the Empire State Building and The Chrysler building started development. This was a race between the proprietors of both buildings to have the tallest structure in the world. The pride of the owners and the fact that the labor work was so cheap enabled the construction to continue; both buildings were able to be constructed in record time at a rate of four stories/week (Quora.com, 2019).

A Brief Description of the Empire State Building

The Empire State Building Located in the focal point of Midtown Manhattan, New York was completed in 1931. It was designed by Shreve, Lamb, and Harmon. It was named the “Empire State” after the nickname for New York. It was the world’s tallest building until the World Trade Center’s North Tower in Lower Manhattan was built around 40 years later in 1970 (En.m.wikipedia.org, 2019). “ The building has a roof height of 1,250 feet (380 m) and stands a total of 1,454 feet (443.2 m) tall, including its antenna” (En.m.wikipedia.or, 2019).

Theoretical Background

The architect’s inspiration for the Empire State building was an Art Decor Skyscraper inspired by the shape of a pencil as well as being told “Make it as tall as possible without falling” (Momin, 2019) by John Jacob Raskob.

Raskob was a self-made man who wanted to build the best executive office building and “achieve maximum efficiency, but with artistry and a tastefully modern style” (Encyclopedia.com, 2019). The Empire State building was definitely not the most aesthetically pleasing buildings however it featured top-notch engineering. This was down to the Architect Lamb who “preferred functional architecture and designed the Empire State Building with simplicity in mind. He planned the structure with the practical aspects of the budget, time, and zoning regulations in mind” (Encyclopedia.com, 2019). The building helped lift the spirits of American citizens, despite only renting out only 25% of office space.

A Brief Description of the One World Trade Centre

The One World Trade Center is the largest building in the Western Hemisphere. including its spire, the building reaches a total height of 1,776 feet (541 m). It was designed by David Childs who has additionally designed buildings such as the Burj Khalifa and the Willis Tower. Located in Lower Manhattan New York. This is the main building of the rebuilt World Trade Center after terrorist attacks on September 11, Which the name also came from. This skyscraper is now the sixth-tallest in the world (En.m.wikipedia.org, 2019). “The tower’s observation deck was specifically constructed with the memory of the Twin Towers in mind” (Nast, 2019).

Empire State compared to the One World Trade Centre

Both the Empire State and the One World Trade Centre are skyscrapers however there is an immense difference in the influences of the designs. During the Great Depression when building skyscrapers such as The Empire State, The proprietor just wanted to fabricate the tallest structure in the world. Fundamentally amid the ’20s Skyscrapers were designed in an Art Deco Style ‘aesthetic of simple, sculptural mass’ (En.m.wikipedia.org, 2019). The use of this style on Skyscrapers compared to earlier styles such as the Home Insurance Building which was just built for office space. Historian Larry Ford describes the style as ‘short buildings made taller with additional stories’ (En.m.wikipedia.org, 2019). The Empire state has windows that have been de-emphasized to make the building look a lot ‘stronger’. “Skyscrapers of this period typically lost their ornamental horizontal divisions, being broken up by physical changes in their shape as one looked up the building, the whole forming a striking silhouette” (En.m.wikipedia.org, 2019). While the One World Trade Centre is roused by stylishly satisfying Contemporary Architecture supplanting what was the twin towers. Rather than simply attempting to make a structure the tallest edifices now take into account environmental issues when building skyscrapers. So the One World Trade Centre has many sustainable architecture aspects. For example, the building has used recycled materials for the structure as well as the interior and a “ rainwater collection and recycling scheme for its cooling systems” (En.m.wikipedia.org, 2019).

The one World Trade Centre is one of the most environmentally sustainable skyscrapers with generating its own electricity from its waste to making offsite hydroelectric and wind power. “The windows are made of an ultra-clear glass, which allows maximum sunlight to pass through; the interior lighting is equipped with dimmers that automatically dim the lights on sunny days, reducing energy costs” (En.m.wikipedia.org, 2019).

Conclusion

To Conclude, skyscrapers and the Modernist style have definitely advanced throughout the years from no aesthetic appeal and building skyscraper simply out of demand to thinking about the function to aesthetically pleasing buildings that takes environment into consideration. Throughout the years as the technology has improved this has enabled architects to design taller and progressively amazing (technically and aesthetically) skyscrapers (Encyclopedia.com, 2019)

References

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2. UKEssays. November 2018. Great Depression Impact on US. [online]. Available from: https://www.ukessays.com/essays/history/how-the-great-depression-affected-us-history-essay.php?vref=1 [Accessed 23 May 2019].
3. Cmhpf.org. (2019). cmhpf.org. [online] Available at: http://www.cmhpf.org/CharlotteArchInGreatDepression.htm#_edn1 [Accessed 24 May 2019].
4. Amazon.com. (2019). [online] Available at: https://www.amazon.com/American-People-World-War-II/dp/0195168933 [Accessed 24 May 2019].
5. David M. Kennedy, Freedom From Fear: The American People in Depression and War, 1929-1945 (New York: Oxford University Press, 1999), p. 69
6. Robert McElvaine The Great Depression: America, 1929-1941 (New York: Three Rivers Press, 1993), p. 303.
7. Kennedy, p. 253.
8. Quora.com. (2019). How did NYC manage to build things like the Empire State Building and Chrysler Building in the midst of the Great Depression? – Quora. [online] Available at: https://www.quora.com/How-did-NYC-manage-to-build-things-like-the-Empire-State-Building-and-Chrysler-Building-in-the-midst-of-the-Great-Depression [Accessed 24 May 2019].
9. Termpaperwarehouse.com. (2019). The Reasons of the Great Depression During 1930s – Term Paper. [online] Available at: https://www.termpaperwarehouse.com/essay-on/The-Reasons-of-the-Great-Depression-During-1930s/437297 [Accessed 24 May 2019].
10. En.m.wikipedia.org. (2019). Empire State Building. [online] Available at: https://en.m.wikipedia.org/wiki/Empire_State_Building [Accessed 25 May 2019].
11. En.m.wikipedia.org. (2019). Early skyscrapers. [online] Available at: https://en.m.wikipedia.org/wiki/Early_skyscrapers [Accessed 25 May 2019].
12. Momin (2019). Architectural theory- The Empire State Building. [online] Slideshare.net. Available at: https://www.slideshare.net/AnikaMomin/architectural-theory-the-empire-state-building [Accessed 25 May 2019].
13. Encyclopedia.com. (2019). The Empire State Building: Skyscraper Symbol of America’s Power | Encyclopedia.com. [online] Available at: https://www.encyclopedia.com/science/encyclopedias-almanacs-transcripts-and-maps/empire-state-building-skyscraper-symbol-americas-power [Accessed 25 May 2019].
14. En.wikipedia.org. (2019). One World Trade Center. [online] Available at: https://en.wikipedia.org/wiki/One_World_Trade_Center [Accessed 25 May 2019].
15. Nast, C. (2019). A Look at the New One World Trade Center. [online] Architectural Digest. Available at: https://www.architecturaldigest.com/story/one-world-trade-center-new-york-david-childs-article [Accessed 25 May 2019].
16. Modernist architecture – Designing Buildings Wiki (2019). Available at: https://www.designingbuildings.co.uk/wiki/Modernist_architecture (Accessed: 10 April 2019).
17. Encyclopedia.com. (2019). The Empire State Building: Skyscraper Symbol of America’s Power | Encyclopedia.com. [online] Available at: https://www.encyclopedia.com/science/encyclopedias-almanacs-transcripts-and-maps/empire-state-building-skyscraper-symbol-americas-power [Accessed 25 May 2019].

Introduction:

The Great Depression, a severe economic crisis that plagued the world in the 1930s, brought about widespread unemployment, poverty, and a sharp decline in global trade. This essay aims to provide an informative analysis of how World War II played a significant role in ending the Great Depression. By examining various economic, social, and political factors, we can gain insights into the transformative impact of the war on the global economy.

Increased Government Spending:

During World War II, governments across the globe significantly increased their spending on military production and defense. This surge in government expenditure created jobs and stimulated economic activity. As factories produced weapons, vehicles, and supplies for the war effort, employment rates rose, and people regained their purchasing power. The increased demand for goods and services led to a revitalization of industries and provided a much-needed boost to the economy.

Technological Advancements and Industrial Expansion:

To meet the demands of the war, nations invested heavily in technological advancements and industrial expansion. Research and development efforts were intensified to create more efficient production methods and new technologies. This led to innovation and increased productivity in various sectors, including manufacturing, aviation, and electronics. The advancements made during the war laid the foundation for post-war economic growth, spurring industries and creating new opportunities for employment and investment.

Expansion of the Workforce:

World War II had a profound impact on the workforce, particularly for women and minority groups. With many men enlisted in the military, women were called upon to fill essential roles in industries previously dominated by men. This expanded the labor force and provided women with increased economic independence. Additionally, the war presented opportunities for African Americans and other minority groups to secure employment and gain skills previously denied to them due to discrimination. The integration of diverse groups into the workforce contributed to a more inclusive and dynamic economy.

Increased Government Regulation and Intervention:

To support the war effort, governments implemented various policies and regulations aimed at controlling prices, rationing resources, and directing production. This increased government intervention in the economy helped stabilize prices, prevent hoarding, and ensure the equitable distribution of essential goods. Moreover, the war fostered a sense of national unity, leading to greater acceptance of government intervention and regulation. These measures helped stabilize the economy and instill confidence in businesses and consumers.

International Trade and Post-War Reconstruction:

World War II reshaped the global order, opening up opportunities for international trade and post-war reconstruction. The demand for goods and materials during the war stimulated trade between nations, creating new economic partnerships and markets. Additionally, the reconstruction efforts following the war provided significant economic stimulus, as devastated regions required massive investments in infrastructure, housing, and industries. This post-war reconstruction phase spurred economic growth and facilitated the recovery of many countries affected by the Great Depression.

Conclusion:

World War II played a crucial role in ending the Great Depression by igniting economic growth through increased government spending, technological advancements, and industrial expansion. The war provided employment opportunities, expanded the workforce, and fostered government intervention and regulation. Moreover, the war’s impact on international trade and post-war reconstruction created a favorable environment for economic recovery and growth. While war is not a sustainable solution to economic crises, the lessons learned from this period emphasize the importance of government intervention, investment in innovation, and international cooperation in times of economic hardship.

My name is Holly Reed, I am a 23 year old and I come from a big family, we owned a small little bakery on the northside of town before the great depression had begun. I am married to Scott Reed and we have two children together, Braxston and Reagan. I live with my husband Scott and my two kids in a 1 bedroom apartment. We lost everything when the great depression started, we sold a lot of our things just to buy food. My parents Kathryn and Wyatt live in New York. They aren’t suffering as much as we are. They sold their house and got a decent apartment but they also lost a lot of things. It’s been really hard to find a job for a woman now during the Great Depression. Before it happened I was a bag girl at a supermarket nowadays nobody goes there because nobody has money to spend stupidly so they let me go. If it wasn’t for my husband i would have no one to provide for our kids and myself. In the picture below i see a father and his son. The father has a broom in his hand they are cleaning up the mess. I think what’s going on in their lives right now is that they are very confused on what they are gonna do how they are going to afford food, drinks,and etc.

We’ve been in the Great Depression for a while now. I have invested all my money into the banks. A shipping company was invited into my bakery. We eventually lost the bakery we couldn’t make payments so the bank took it from us. The bakery was the only thing that we had left when we lost our house. The shipping investment that was invested into the bakery went away to support their own, it affected a lot of people even the wealthiest. My husband and I plan to pay back the loans we owe little by little, when he gets a job we split the money in half use it to buy food, pay for rent and etc. than what is left over we put away to give to the bank even if it is 1 dollar.

Sometimes i still think about how we used to live , in our big house with 4 rooms, a big ole kitchen where i loved to cook….. I lived in Edison, New York. It took a long way to get the house that we had. We had to buy our house on margin, What that means is that we had to take out loans to purchase the house we had. The people that gave out loans were the bank. To rent out the house we had it was 60 dollars a month. All together it was 1,298 dollars. My husband and I planned on working and getting loans to pay it off. Our house eventually got foreclosed on. We were forced to move to a hooverville because there was nowhere to go. I live in a really ghetto area where we use blankets for walls and all our kids including i sleep on the floor and there are 2 other families living with us. I blame the banks for losing our house because if we didn’t have trust in them than we would have never have gotten the house in the first place. We trusted our money with them when they never told us they were having banking crises.

The banks handled the stock market crash horribly. They never told us anything. they told us they were gonna keep our money safe. They kept us in the dark the whole time. When they started to tell us all of our money was gone. I kept my money with the banks because I felt like I could trust them. When I found out all my money that my husband and I saved up to pay for our house we were devastated but also very mad at the banks our president.

I honestly do not like hoover, he did nothing to help with the great depression. He felt that assistance should be handled on a local, voluntary basis. Hoover’s response was he doesn’t give out handouts he said the government shouldn’t need to help you if you’re in a crisis you need to figure it out yourself he basically said it sounds like a personal problem to him. In my opinion it is a dumb idea how could we bulid the econmy over again with no money with nothing. We need help from the government. Trickle down economics works. Trickle down economics is that theories states that all taxes spur economic growth. down I am going to vote for Franklin Roosevelt because he is more reliable and he knows what he is doing, hoover is doing everything wrong.

Studs Terkel’s Hard Times is a panoramic chronicle of the great American depression of the nineteen-thirties. The book is entirely comprised of interviews and provides the vision of the great recession from top to bottom. From the administration that muddled through the crisis to the hobos and hustlers that scrambled through it. Written towards the late 60s, Hard Times also includes interviews from the young generation. In the prologue, the author explains that a time has come when one must stand out and speak to the younger generations about the great catastrophe.

A radio commentator, journalist, and author, Stud has provided a different perspective on different issues from the many published books over the years. Specifically, his publication in 1970 of the Hard Times. The book is an oral account of the great American depression. The author interviewed several people across America for the book and pieced them together to bring ordinary people to talk about their experiences and views on some aspects of the depression. Issues like the crash of 1929, the employment crisis, President Roosevelt’s new programs, and farm holidays.

Stud grew up in Chicago; nonetheless, he was born in New York in the year 1912. He graduated from his undergraduate studies in 1932 and subsequently from law school in 1934. Presently, Stud hosts a radio program in Chicago emanating from WT FM. Where he interviews and lectures on different historical matters. Hard Times was one of his bestselling books among the Pulitzer-winning prize, Working, and the Race. Recounting other people’s events and life experiences is Terkel’s favorite job. His exceptional interviewing skills have enabled him to publish new books. For example, his race publication of how whites and blacks feel and think regarding American obsessions. The book is comprised of over one hundred interviews of people’s attitudes and views regarding the issue of race.

A listener, writer, disc jockey, and above all, a good reporter. Terkel begins the hard times on account of what the country managed to go through after occurrences in 1929. In Hard Times, the author takes the reader through the memories, reflections, and views of the depression, as told by those who were affected by it and lived through the hard times. The author captured how the hard times changed society, collecting pieces of information from those who faced depression and those who remained opulent. It is filled with people’s details and information during hard times. The book vividly narrates the effect of depression on those who survived it and afterward became the embodiment of the United States of America. It serves as an example of the American spirit, after several years of struggling, and how the country got back on its track once again.

The first few chapters of the book give an outline of the great disaster. It begins by discussing the bonus march in Washington by the veterans, which placed the last nail on the coffin of President Hoover’s government. On the one hand, the author demonstrates how the rich dealt with the crash of 1929. While on the other hand, the book deals with how families survived, the hobos traveling culture, and the nomads. The book finally ends with two chapters discussing the rise and rise of the civil movement and labor unions in America.

The second chapter is focused on how Americans survived the destruction due to the great depression of the nineteen-thirties. It includes the inspiring accounts of impoverished citizens who lost everything but still have humanity in them. Similarly, it profiles conmen, bootleggers, and hustlers who survived by all means possible. The author focuses the reader’s attention on two American groups that were mostly helpless; farmers and coal miners. He explores how their sufferings and pains were improved in these sections by the government and to some extent, the unions.

The third book of Hard Times focuses on the establishment of the great depression. The author begins to interview brain trusters and power players in President Roosevelt’s government. He further discusses other major political players, specifically; Alf Landon, Huey Long, and Dr. Townsend. Similarly, he interviews political players at the time in the leftist movement; Wobblies, Communists, Catholic workers, and many more. In Hard Times, Studs seem to disprove the notion that there was a brewing off a socialist revolution in America. The fourth book is concerned with the strategy of the Second World War and its impact on ending the great American depression.

Great Depression Book Review

The roaring Twenties was a period of transformation, at which time many Americans possessed, automobiles, and radios, and telephones. Automobile innovations brought the need for good roads (increasing 10% to 80% of families owning cars). The radio brought people closer to each other. The telephone connected families and friends together. In the 1920s, the 18th amendment to the U.S. Constitution was approved, the period of Prohibition. The 1920s started with American troops returning from Europe after WWI and going back to their family and friends, after lasting about four years. Another two occurrences during the 1920s were — the 19th amendment granted women the right to vote changed America. And on the radio became a family experience, where everyone would gather around the radio and listen to the news. Furthermore, harmonious styles were shifting in the 1920s and Louis Armstrong making a prominent figure during the Jazz Age. The Jazz Age glorified city life. Americans — including many African American sharecroppers from the South — were leaving their farms in record numbers to live and work in places like Chicago and New York City. F. Scott Fitzgerald called it a time when ‘the parties were bigger, the pace was faster, the buildings were higher, the morals looser”.

Hard Times: an Oral History of the Great Depression by Studs Turkel is an insightful book providing an oral history of the compilation of historical information of interviews with people having a personal experience. There are numerous selections from Hard Times where the audience can read different perspectives of people. Going through wealth to losing their possessions to the stock market, standing in bread lines, farmers losing a fortune during the dust bowl, the New Deal presented by Franklin D. Roosevelt, The Works Progress Administration WPA and three strikes all taking place during the great depression. The roaring 20s had led to the great depression and how Americans had to survive (which was a theme in the book) during times of fears and hopelessness in the world. I was relieved when the Crash came. I was released. Being in business was something I detested. When I found out that I could sell a song or a poem, I became me, I became alive. Other people didn’t see it that way. They were throwing themselves out the window. Someone who lost money found that his life was gone. When I lost my possessions, I found my creativity. I felt like I was being born for the first time. So for me the world became beautiful. The stock market crash was the fastest economic turn in world history, thus prices and profits fell, and incomes were destroyed. In 1932-1933, national employment reached 25%; this event was the first time in US history more people are emigrating rather than migrating because of immigration laws strictly enforced during the depression – 2 million people lose their homes and start to migrate around the country. Sterkel is illuminating that the occasion has come to prompt to the oblivious minority in the misfortune. Through his book he interviews those who have lived through the Depression, he even includes the voices of younger people who know little of hard times. Throughout Hard Times, the theme is whatever the hopelessness of a catastrophe, the community always forms. We had guys patrol the plant, see that nobody got involved in anything they shouldn’t have. if anybody got careless with company property – such as sitting on an automobile cushion without burlap over it – he was talked to. The most frequent form of the community mentioned throughout the book is the labor union, possibly vividly in 1939, Flint Sit-Down Strike. In demand to soothe equally Chrysler management and Michigan governor Frank Murphy, protestors form a small community in the plant, safeguarding no car parts, machinery, or other business property is damaged. Through the book, Terkel shows a good job exemplifying the suffering expressions of the Depression survivors with more disordered words of the young. The conclusion of his novel shows, a young man is curious about the difficult era left on his father. And an elder woman is curious if the adolescents of their sixties will consent the change her group cannot. However, the oral collection of Hard Times is merely enough to show us in-depth details because Studs Terkel is selecting interviews of his choice and some words or sentences may be altered in the process.

Shoot Horses, Don’t They?

The Depression led people to do desperate things to survive. Horace McCoy, novel They Shoot Horses, Don’t They? Displays a ludicrous instance of what American popular culture occurred through an economic disaster. The novel revolves around a marathon dance contest, which operates as a metaphor for life during the 1930s in America. What is believed to be an entertaining and fun dance becomes tireless, competitive work between Robert and Gloria, as well as for the other contestants. The marathon is basically a survival of the fittest and only one couple will win 1,000 at the end. ‘He accused me if cheating –’ she said. ‘Then he hit me and started choking me –‘ ‘Go on, kids,’ Socks said. ‘Act as if nothing has happened…’.The dance was draining, physically and emotionally challenging; the marathon is unlawful. A pregnant woman is dancing for hours on end; therefore, it is entailing a lot of arduous effort of the contestants who are going insane as a result. The promoter’s Socks, Rocky tries to put on a false marriage ceremony to uproar advertising between Vee Lorell and Mary Hawley for a hundred dollars. Additionally, the dance contest is held inside, in a huge hall located on an ocean pier. For thirty-six days (879 hours) of the marathon, the competitors are confined, closed off from nature and from sunlight; this occurrence becomes a significant meaning in McCoy’s novel, as the ocean and sunlight are imagery. The ocean represents the constant flow of life and sunlight represents hope. The dancing was a way to avoid the contestants’ lives and the reality on what was happening on the outside because they had a place to sleep and food was provided for them. Therefore, They Shoot Horses, Don’t They? Is a basic structure of capitalism, by the promoters Rocky and Socks are both making the decisions for the people and controlling the contestants; they have built a marathon as to gain profit. McCoy’s philosophy about consumerism is no one is safe, and, in the book, it shows the audience the emptiness of the individuals. And at the end the marathon the dance had exhausted Gloria and thus, accelerated her death (Robert thought it was best for her), because Gloria was a lost cause, she was already in bad shape and in misery from the beginning of the book. He shot her to no longer let her endure life. McCoy does not seem optimistic about the future of America; California as a metaphor and the end of growth.

Introduction

The Great Depression, a period of severe economic downturn in the 1930s, had a profound impact on various sectors, including the real estate market. In this analytical essay, we will examine the causes and consequences of the Great Depression and its specific effects on the real estate industry. By analyzing the factors that led to the market crash, the subsequent challenges faced by the real estate sector, and the long-term implications, we aim to gain a comprehensive understanding of the relationship between the Great Depression and the real estate market.

Causes of the Great Depression

The Great Depression was triggered by a combination of factors, including excessive speculation in the stock market, an imbalance in income distribution, overproduction in industries, and an unsound banking system. The stock market crash of 1929, also known as “Black Tuesday,” marked the beginning of the economic downturn. As stock prices plummeted, investor confidence declined, leading to a wave of panic selling and mass liquidation of assets.

Impact on the Real Estate Market

1. a) Sharp Decline in Property Values: The collapse of the stock market had a significant impact on the real estate market, resulting in a sharp decline in property values. Real estate prices plummeted as investors faced financial difficulties, leading to widespread foreclosures and distressed sales. Homeowners experienced substantial losses in property equity, exacerbating the economic turmoil.
2. b) Lack of Financing and Credit: The banking system, crippled by the stock market crash and subsequent runs on banks, experienced widespread failures. As a result, access to financing and credit became severely constrained. Mortgage lending dried up, making it difficult for potential buyers to secure loans and exacerbating the downward spiral in property values.
3. c) High Levels of Unemployment: The Great Depression led to widespread unemployment as businesses shuttered and industries contracted. High levels of joblessness directly impacted the ability of individuals to afford homeownership, resulting in reduced demand for real estate and further exacerbating the decline in property values.

Government Intervention and the New Deal

In response to the economic crisis, the U.S. government implemented various measures under President Franklin D. Roosevelt’s New Deal. These initiatives aimed to revive the economy and stabilize the real estate market. The Home Owners’ Loan Corporation (HOLC) was established to provide refinancing options to homeowners facing foreclosure. The Federal Housing Administration (FHA) was created to provide mortgage insurance and promote affordable housing. These programs helped restore confidence in the real estate market and facilitated the recovery process.

Long-Term Implications

1. a) Shift in Housing Patterns: The Great Depression had a lasting impact on housing patterns. Many families were forced to downsize or share accommodations to cope with financial constraints. The preference for homeownership waned, leading to an increase in rental demand. This shift in housing preferences had a profound effect on the real estate market, with rental properties becoming a more prominent sector.
2. b) Stricter Regulations: The economic crisis exposed weaknesses in the financial system, leading to the implementation of stricter regulations. The Securities and Exchange Commission (SEC) was established to regulate the stock market, and banking reforms were enacted to enhance stability and prevent future crises. These regulatory changes aimed to safeguard the real estate market and protect consumers.
3. c) Lessons Learned: The Great Depression highlighted the importance of prudent financial management, diversification, and risk mitigation in the real estate industry. Investors and policymakers became more aware of the potential risks associated with speculative bubbles and the need for responsible lending practices.

Conclusion

The Great Depression had a profound impact on the real estate market, with property values plummeting, financing drying up, and unemployment levels skyrocketing. The crisis led to a restructuring of the real estate industry, with increased government intervention and the implementation of new regulations. The experience of the Great Depression provided valuable lessons and shaped future policies to prevent similar crises.

Despite the challenges faced during this period, the real estate market eventually rebounded as the economy recovered. The Great Depression serves as a reminder of the resilience of the real estate industry and the importance of sound economic policies in fostering stability and growth.

As we reflect on the Great Depression’s impact on the real estate market, it is crucial to consider the lessons learned and apply them to navigate future economic challenges. By analyzing historical events, we can better understand the complexities of the real estate market and make informed decisions to mitigate risks and maximize opportunities.

How have U.S. protectionist trade policies affected global trade since 1930: lessons for the US-China trade war.

Ever since the 1980s, before he showed interest in politics, President Trump had advocated trade restrictions, especially on tariffs because in his point of view, to decrease the trade deficit and promote the domestic manufacturing industry, those trade restrictions are seen as necessary procedures. He said that the US is getting ripped off by other trading partners/competitors and imposing such kinds of trade restrictions was a key proposition his presidential campaign made.[1] While some politicians and economists claim that the trade deficit the US is experiencing is not a huge problem, and only a handful of professionals think tariff is the ultimate solution, in the historical context, not a single trade-war that was escalated due to imposing tariffs, retaliating, and so forth, never actually benefitted any countries so far which also means there was no winner when it comes to economic sanctions between countries.[2]

The trade war between the US and China has been an ongoing global issue for over a year now. Because of this massive trade war between the two most powerful countries in the world, any other issues regarding the local economy became a relatively minor factor. This rise of protectionist trade policy is nothing new when you look back in history. There were rise and fall of all kinds of protectionist trade policies but eventually, they were terminated because protectionist trade policies limit the potentials of domestic industries. Protectionist trade policies, while purporting to help the national economy, actually harm it and in doing so create a chain reaction that harms the global economy.[3]

The Smoot-Hawley Act in the 1930s after the Great Depression caused lawmakers to impose severe protectionist policies such as tariffs, import quotas, currency control, and more. When the US imposed such laws, other countries also imposed their own trade restrictions on international trade to counter the effect of the new protectionist policies by the US. Because other countries also retaliated against US policies, it made it even harder for the US to overcome the impact of the Great Depression. Imported goods were largely unaffordable for most of the consumers, so the only option for consumers was to buy domestic goods which tanked global trade by about 65 percent. After the stock market in the US took a nosedive in 1929, the most severe economic depression that we now call the ‘Great Depression’ started and it eventually lasted until the end of the 1930s.[4] There are a lot of comparisons between the Great Depression and other economic downturns, but even the mortgage crisis in 2008, statistically speaking, doesn’t come near how much effect the Great Depression had on the world economy.

There are lots of theories and studies about why the Great Depression happened from various perspectives, but I want to emphasize some of the points that the recent study has in common. (usually non-monetary explanations) The common points among the studies are about the government’s role when it comes to economic stability. First of all, the government should pursue the goal of keeping a stable growth path regarding money supply and/or aggregate demand. When there is a projection or forecast that there will be an economic downturn, central banks should make the effort to pour liquidity into the banking system by decreasing discount rates, lending out discount loans to banks so that there are excess reserves in banks and more money supply in the market which would stimulate spending that would maintain the nominal demand from collapsing. However, the Federal Reserve believed that maintaining a balanced government budget is the right way to manage the economy. They simply thought that the economic downturn was a good phenomenon because any business or bank would not survive during the economic downturn and there would be healthier businesses and banks that take place and therefore, the economy would start going again.[5] From today’s point of view, the actions of the Federal Reserve are as stupid or ignorant as anyone can be. It is the same thing as saying leave the sick to die and there will be more babies that would replace those who are dead. But when you think about it, babies don’t come out automatically when someone dies, humans have to go through procreation to have more babies. It is the same thing for the economy, there should be some government organization to stimulate more money supply so that there would be new businesses and banks to replace those that are gone. The Feds just watched and did nothing when the entire world collapsed.

After the Great Depression, countries all over the world, out of fear that their economy would become worse, started imposing severe protectionist trade policies. But despite the increased measure of protectionist trade policies, there was still substantial cross-country variation in the movement to protectionism. Countries that maintained gold standards imposed higher tariffs, more import quotas, and tighter exchange controls compared to countries that went off gold. Eventually, we know that the world leaders agreed to move away from gold and created a new global trade economy based on dollars.[6] According to Claude Barfield, who is a resident scholar at the American Enterprise Institute, the U.S. had not been fully onset of the issue regarding the Great Depression. They simply did not understand the cause of the depression and the solutions they came up with even worsened the aftermath of the world’s most devastating economic downturn. The consensus among Congress and President Hoover was if they raised taxes on every imported good that was coming into the U.S. regardless of where those goods came from (basically talking about tariffs), this imposed tax would be able to protect U.S. companies and farms and by doing that it would also protect the economy. Many professionals even back then argued against the decisions Congress and the White House made because it would hurt the economy rather than help it. As soon as President Hoover signed the bill, the stock dropped the next day. The market knew that if this law went into action, it would just make things worse. The Smoot-Hawley Act not only prolonged the effect of the Great Depression in the U.S., but it also affected other countries in the world negatively. Starting with the ‘Reciprocal Trade Agreements Act’ in 1934, the U.S. started negotiating terms of trade with other countries individually rather than imposing consistent tariffs across nations.[7] After the U.S. government realized what they did only worsened the situation, they should have retreated what they did but instead of doing that, the U.S. used relief of imposed tariffs as a bargaining chip with other countries. Consequentially speaking, the policies the U.S. imposed after the Great Depression only stimulated tensions between countries related to trade and eventually everything went back to how it was. From a very subjective point of view, they just wasted a decade because of wrong remedies after the global economic shock.

After the dark ages of World War II, many countries felt the need for tighter relationships and multilateral agreements so that countries could benefit from each other as well as a method to prevent means of conflict. The best way to prevent conflict and hostility is to have mutually beneficial agreements so that one country won’t simply go to war with other countries and sacrifice all the mutual benefits. The ‘General Agreement on Tariffs and Trade’ was established to promote and stimulate international trade by reducing and/or eliminating trade restrictions and barriers such as tariffs, quotas, etc. Between 1948 and 1994, before the World Trade Organization was founded, the GATT made rules for most of the world trade and led over the periods that had the highest growth rate related to international commerce. Even though it was just a provisional agreement and organization, for those 47 years, it seemed successfully established despite some questions that were raised regarding having no means of authority over trade agreement violations.[8] Even though GATT was formed to serve multilateral trade agreements, since it was only an agreement between countries without proper authority to watch over, there were multiple cases where countries formed plurilateral agreements devoted to selective trading and caused conflicts among members. After experiencing some limits because GATT was merely a provisional organization, the members of GATT were eager to step further by creating the World Trade Organization in January 1995. The creation of WTO is a significant step towards international trade because not only does WTO set rules agreed upon between different nations, but it is an intergovernmental organization that has its headquarters and staff and it also includes service sector and intellectual property rights which are crucial in the modern-day business environment especially with trade.[9]

There have been lots of speculation about why there is a rise in demand for protectionist trade policies among voters and at the same time hatred against immigrants in the U.S. and by now it is obvious that people who claim that it is for the benefit of our nation doesn’t know most recent studies related to trades. One thing particular about the U.S. is that the manufacturing industry has been struggling for some time now ever since the rise of other countries when it comes to global trade. Usually, manufacturing companies relatively do not have a high profit margin so, for them to cover costs and make a profit, the best way to do it is by cutting costs. The easiest way to cut costs is cutting wages, and filling up employees who are desperately in need of a job. When it comes to being desperate, immigrant workers are one of the most desperate people needing jobs in the nation. So, companies started lobbying governments to be lenient about immigration laws and bring more immigrants so that they could have enough labor and stop giving higher wages to Americans who were already working for them.[10] Another factor that comes in is that most of the manufacturing factories are located in states where rent is cheap which is called ‘Rustbelt’ and most of those states don’t have much diversity when it comes to demographics. When it comes to finding the cause of what happened, people tend to find easier targets to blame rather than trying to find a series of the reasons why it happened. It becomes even worse when there are only similar people around you, and you won’t find anyone else who has different opinions as you do. You will become more convinced with what you think even though that’s not what caused the struggles you go through since everyone else around you thinks the same way and therefore, the hatred is formed.[11] Protectionism logic today in politics states that everybody outside this country cannot be trusted and they are taking advantage of the US, therefore, we should do the same thing and retaliate. It feeds off of hatred that is already built, and it is so easy to convince the people who already think they are the victims of the inflow of foreigners or foreign goods. It is somewhat true that they are the victims of the inflow of immigrant workers and wage cuts but that’s not what immigrant workers formed, it is rather their employers who did that to them and a lot of times, politicians who they voted for.

When it comes to trade disputes among countries, there were no winners on any occasion. During an economic downturn, people tend to find blame outside rather than inside their own country, and usually, politicians take advantage of people and give them someone to blame usually people who don’t have much voice (immigrants, low-income families, minorities). It happened before and it is happening again, in the modern world. It is a fact that the Chinese government has funded its firms (Huawei, Alibaba) to take illegal actions such as corporate spying, and implementing devices that helped them to spy on other companies in the US.[12] There are legal actions you can take through WTO, World Bank, and IMF to restrict the Chinese government from doing such illegal actions but rather than doing that Trump administration has taken actions that are too extreme that not only hurt China, but it also hurt as much internally especially the majority of the consumers. Just because it is an easier way to impose tariffs and go to a trade war, it doesn’t mean the government should do it when it hurts its people. The first obligation of the government is to work for the people of the country and when the government imposes certain policies that hurt their own, you can’t say that it’s the right course of action. There is always a proper way of doing a job.

Bibliography

1. Leonard, Jenny. ‘Trump heaps more tariffs on China, still no deal in sight.’ Business Report (Cape Town, South Africa), September 2, 2019. NewsBank: Access World News – Historical and Current. https://infoweb.newsbank.com/apps/news/documentview?p=WORLDNEWS&docref=news/175B57922DD4AA80.
2. Eckes, Alfred E. “Opening America’s Market: U.S. Foreign Trade Policy since 1776.” Chapel Hill: University of North Carolina Press, 1995.
3. Johnson, C. Donald (Clete Donald). The Wealth of a Nation: a History of Trade Politics in America. New York, NY: Oxford University Press, 2018.
4. Eichengreen, Barry, and Douglas A. Irwin. ‘The Slide to Protectionism in the Great Depression: Who Succumbed and Why?’ The Journal of Economic History 70, no. 4 (2010): 871-97. http://www.jstor.org/stable/40984781.
5. White, Lawrence H. “Did Hayek and Robbins Deepen the Great Depression?” Journal of Money, Credit, and Banking. 40, no. 4 (2008): 751–68. https://doi.org/10.1111/j.1538-4616.2008.00134.x.
6. Long, J. Bradford De. “‘Liquidation’ Cycles: Old-Fashioned Real Business Cycle Theory and the Great Depression,” December 1990. https://doi.org/10.3386/w3546.
7. Little, Becky. “The Great Depression Lesson About ‘Trade Wars’.” History.com. A&E Television Networks, March 5, 2018. https://www.history.com/news/trade-war-great-depression-trump-smoot-hawley.
8. “The History of Multilateral Trading System.” WTO. Accessed November 19, 2019. https://www.wto.org/english/thewto_e/history_e/history_e.htm.
9. “Understanding the WTO – The GATT Years: from Havana to Marrakesh.” WTO. Accessed November 3, 2019. https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact4_e.htm.
10. Rose, Andrew K., Daniel M. Sturm, and Jeromin Zettelmeyer. ‘The March of an Economic Idea? Protectionism Isn’t Counter-cyclic (anymore).’ Economic Policy 28, no. 76 (2013): 569-612. http://www.jstor.org/stable/24029515.
11. Phillips-Fein, Kim. ‘Conservatism: A State of the Field.’ The Journal of American History 98, no. 3 (2011): 723-43. www.jstor.org/stable/41510116.
12. Haridy, Rich. “Huawei, the US Ban, and Links to Chinese Spying Explained.” New Atlas, August 15, 2019. https://newatlas.com/huawei-ban-us-what-spy-evidence-exists/59772/.

Introduction

Statistics such as the unemployment rate highlight part of the Great Depression and COVID-19 pandemic story. The most vital impact was the two calamities’ effect on people’s quality of life. The tribulations of the Great Depression had tremendous social and psychological implications based on unemployment, poverty, and hunger. Similar issues appeared in the news frequently as the COVID-19 pandemic ravaged the country. The familiarity of these issues is thus reminiscent of the Great Depression, particularly for social workers engaged in public assistance, relief food, and jobless compensation.

Social Work Comparison between the Great Depression and COVID-19 Pandemic

The Great Depression resulted from the stock market crash of 1929, which left millions of Americans unfed and unemployed. The impact of both calamities was beyond people’s control; thus, the affected were entitled to support as a matter of social justice and welfare. The unemployment rate during the Great Depression was 25% translating to 12 million Americans, whereas the COVID-19 unemployment rate was 14%, where more than 23 million Americans were left unemployed (Iacurci, 2020). During the Great Depression, there was no federal system for direct relief, such as cash payments or relief food provided by the government to the most vulnerable people.

Charity services filled the gap by providing meager benefits, still below the amount needed to feed a family. The lack of public assistance would demoralize people, thus breaking their spirit and will to survive. Suicidal rates were bound to peak as people became disillusioned with their living conditions. The increase in suicide rates and mental breakdowns is attributed to exhaustion, thinking about where the next meal would come from. Unemployment breeds misery, dissatisfaction, and discouragement; thus, stress and depression levels among the affected increased.

Men suffered most during the Great Depression, as they were accustomed to working and supporting their families. The men vigorously searched for the few jobs available with minimal compensation to buy basic amenities for their starving families. They were disillusioned as there was no public assistance throughout the period, as the federal government was unprepared for the level of desperation. At the time, men were the breadwinners of the family; thus, their inability to fend for their families was viewed as a failure. Men could take unemployment for a few weeks as their families survived on the little savings, but the prolonged unemployment for two to three years broke their will to continue living in desolation. Most people became so discouraged that they stopped trying, and some abandoned their families.

At the height of the 1930s national calamity, social workers knew that families depended on scarce relief orders, thus exacerbating the deplorable circumstances. The situation is similar in the COVID-19 context as social workers highlight the feelings of anger, bitterness, loss of pride, and futility among the unemployed. However, the situation where men are disproportionately affected by the COVID-19 pandemic more than women is different from the Great Depression. In the contemporary world, men and women can serve as family breadwinners, thus reducing the burden on one family member.

Social workers can identify the unprecedented increase in stress among the population caused by social isolation. This situation is exacerbated by the constraint of seeking support from the overburdened public program system. People were forced to accept compromises and make sacrifices that would affect them for the rest of their lives. The lack of public assistance would make young people give up their dreams, get married, or have children. Social workers should show kindness to the public by sharing resources and strengthening the bonds within the community. This service to humanity entails providing basic amenities such as foodstuff to ensure people are not malnourished. Social workers provided soup during the Great Depression and non-perishable food during the COVID-19 pandemic due to the continued lockdowns that limited movements to crowded places such as markets.

The family was the most vital source of strength for most Americans during both pandemics. During both pandemics, families would be locked inside their homes; thus, the value of family unity harmonized people to continue preserving in the hope of a better future. During the COVID-19 pandemic, the lockdown directives issued by the government ensured people stayed indoors to prevent the spread of the infection. This was similar during the Great Depression since the lack of public assistance and cash benefits led people to stay at home playing board games and listening to the radio.

Social workers realized that economic and emotional implications are the basis for most social work in both situations. The lines at food banks are similar to the Great Depression as people queued waiting for the relief food. In these circumstances, the primary role of social workers is to try to ease the despair of the people entangled in the economic breakdown. According to Brenner and Bhugra (2020), record numbers of people will likely have post-traumatic stress disorder (PTSD), stress, anxiety, and depression as a result of the traumatic experience. Social workers were trying to bring thousands of disillusioned people the courage to live through support services.

NASW Code of Ethics

The NASW Code of Ethics is a document that sets forth generally accepted principles, ethical mandates, and interpretations for the guidance of those involved in social work. The NASW Code of Ethics is intended to serve as a guide to the everyday professional conduct of social workers (Cox, Tice, & Long, 2017). Social workers during the COVID-19 pandemic were faced with a series of novice challenges similar to their counterparts in the Great Depression. Social workers work in organizations overwhelmed by client issues ranging from lack of essential food, financial concerns, unemployment, and anxiety regarding the pandemic. Social workers were faced with questions regarding ethical obligations in circumstances where they could not provide services in the customary way defined in the code of ethics.

The NASW Code of Ethics states that social workers should not provide services unless one is competent. The ethical code was invalidated as social workers in both situations were required to work under circumstances in which they were unqualified. In both cases, social workers were required to operate under duress since their refusal to work during these circumstances amounts to abandoning vulnerable clients, violating their ethical standards (Barsky, 2020). In addition, social workers took care of clients’ needs at the expense of their health as they operated in environments where infections were rife.

Another ethical consideration in both situations is the issue of confidentiality. The NASW Code of Ethics stipulates social workers maintain client confidentiality to maintain their trust, privacy, and dignity. This stipulation also involves engaging clients in informed consent regarding disclosing sensitive information. The application of this provision during the Great Depression included not revealing details about starving families and unemployed people. Social workers were barred from giving specific information regarding the poverty levels of their clients. In the context of the COVID-19 pandemic, social workers were barred from disclosing the health status of their clients without their consent. This involves providing the names and addresses of the client to third parties who were not allowed access to the information. These parts of the NASW Code of ethics were most critical in challenging times to minimize the risk of harm to clients, social workers, and practice settings.

Conclusion

The tribulations of the Great Depression and the COVID-19 pandemic had a tremendous social and psychological impact exacerbated by poverty and hunger. Social workers were trying to bring thousands of disillusioned people the courage to live through support services. Social workers during the COVID-19 pandemic were faced with a series of novice challenges similar to their counterparts in the Great Depression. These incorporated the issue of providing services when competent and maintaining client continentality. Social workers invalidated the competency code as they were working under extreme conditions, but they maintained the confidentiality of their clients and withheld their sensitive information from public scrutiny.

References

Barsky, A. (2020). Ethical exceptions for social workers in light of the COVID-19 pandemic and physical distancing. SocialWorker.com. Web.

Brenner, M. H., & Bhugra, D. (2020). Acceleration of anxiety, depression, and suicide: Secondary effects of economic disruption related to COVID-19. Front. Psychiatry 11:592467.

Cox, L. E., Tice, C. J., & Long, D. D. (2017). Introduction to social work: An advocacy-based profession. Sage Publications.

Iacurci, G. (2020). Unemployment is nearing Great Depression levels. Here’s how the eras are similar and different. CNBC. Web.

The main causes of great depression are reduction in purchasing, stock market crash, and banks closures.

In 1920s, the new methods of manufacturing and many industries made America’s economy to growl because it was able to produce a lot of raw materials and machinery. Many citizens increased profits especially in the stock market.

However, this period took only 8 years and in the ninth year, the economy begun to go down, and this led to fear among the citizens. Thus, great depression was experienced all over and for this reason, the great prosperity was followed by great depression. This paper sheds light on the causes that led to the great depression in America

According to Bordo and White, the great depression begun in 1929 and many people suffered because all the businesses had failed in many sectors, including agriculture and banks (45). This led to many people losing their jobs especially the mineworkers; thus, there was reduction in purchasing.

Despite the fact that farmers produced many farm goods and products, demand was very low. Those workers in the farms lost their jobs because the farm products prices were too low and the main farmer could not afford to pay the workers. Black employees were the most affected because they were laid off to create vacancies for the whites. People who were employed could not buy produced goods, from either the textile or other industries because their wages were decreased.

Parker affirms that due to all the problems it was not easy to circulate money and people who were jobless moved from one place to another throughout the country to look for greener pastures (104). Most of them followed the railroads while boarding trains in the hope to get jobs in other towns. While moving in these towns some opted to live in the shanty towns whose houses were build with cardboard and driftwood.

As companies continued to lay off their workers, many problems arose because those who were paying their purchased goods through hire purchase were unable to complete their payments and hence the sellers repossessed them. People were misled by economic prosperity, which was there in early 1920s’, and this is why they bought items on credit and hire purchase to pay for a period of one year or more depending on their salaries.

Thomas and Fergusson argue that another main cause of depression was the Stock Market Crash (23). During June and August 1929, the stock market levels increased and reached to the uppermost point. Many economists such as Irving were impressed by the stock prices.

However, after the increase, it started dropping slowly but later a huge drop followed and this happened on the months of October and September, but the most considerable drop was experienced on one Thursday, which the American referred to as black Thursday.

People were selling their stocks and a big crowd gathered on the Stock exchange Wall Street. This led to some people committing suicide. Some of the bankers were still positive, they reinvested a huge amount of money in the stock market, and people purchased the stocks.

Soon after, the stock holders lost the money they had invested, the loss was estimated to be more than 40 billion dollars. Some of the banks closed since their investment depended on the citizens and this was due to the crash.

Ivan outlines that bank closures is also another cause of depression because when the people realized that some of the banks had been closed, they rushed to withdraw their money from the few which were open, and this led to further closing of more banks and those who did not withdraw before the closure became bankrupt (26). Since people did not insure their bank deposits, many of them lost their money.

The very few which remained ceased to give bank loans and this worsened the situation since there were less expenditures. The banks also experienced rising debts because people were unable to repay them.

In conclusion, all these events led to the depression all over America with some people committing suicide and others moving from their land to other towns without knowing where they were destined. Many families fell apart, as well as divorces among the married couples.

Works Cited

Bordo, Goldin and Eugene White. The defining Moment: The depression and the American Economy in the Twentieth Century. Indiana University Press, Indiana, 2000. Print.

Ivan R. (2002). Rethinking the Great Depression. Chicago: Dee Publishers, 2002. Print.

Parker, E. D. Reflections of Great Depression. Garden City, NY: Double Day & Company, 2002. Print.

Thomas, E. and Ferguson, David. The Great Depression. An International Disaster of Perverse Economic policies. Michigan: University of Michigan Press, 2004. Print.

In order to maintain a stable economy, it is critical for governments to adopt relevant policies that cushion crucial sectors from economic shocks. The failure in this regard is likely to result in a vulnerable economy that cannot guarantee the survival of vital industries in the aftermath of a global phenomenon such as the Great Depression.

Although some economic policies may vary from one region to another, others play a crucial role in the transition of any developing country into industrialization. The political environment in a region is essential concerning the adoption and proper implementation of various economic policies. Policymakers play a central role in reforms and thus possess significant effects on a country’s economic transformation.

The Great Depression mostly marked the onset of changes in the economic policies adopted by Latin-American countries. This period adversely affected a significant portion of the Latin America, which largely depended on the role of supplying raw materials to different parts of the world as a means of generating income.

Because of the weakening of the global economy, industries in the affect countries minimized the importation of raw materials. This severed the chief source of foreign currency for various Latin-American countries and led to a rising trend of poverty and social chaos.

Thus, there was the need for collaborative efforts by various stakeholders within Latin America to draft economic policies that would safeguard different aspects of the Latin-American economy. Leaders in Latin America acknowledged the need to change economic policies and promoted the discarding of the free-market model in favor of import substitution (Cárdenas et al., 2000).

The applicability of this model remained satisfactory for various Latin-American countries until the 1980s. The import-substitution model focused on the reduction of the dependence of the economy of a nation on foreign parties. To achieve this objective, countries in Latin America embarked on various aspects of local production.

The policies on import substitution ensured the state’s participation in aspects such as nationalization and subsidization of industrial and agricultural raw materials. Other measures included increased tax rates and the imposition of protectionist trade policies. The adoption of these measures focused on the protection of local industries and stabilization of economies in various Latin-American countries.

The import-substitution model attracted support among Latin-American countries due to the consideration that most of the industrialized countries employed various aspects of import substitution to attain states that are more self-sufficient.

Another factor that led to the adoption of import substitution in Latin America was the need to address the rising trend of unemployment and poverty, primarily attributed to the global economic crisis at the time. The Great Depression caused significant economic shocks throughout the world and declining domestic employment in Latin America.

However, from around the 1980s, import substitution policies began to lose favor among developing countries, including those in Latin America. Policies relating to import-substituting industrialization (ISI) led to losses and debts within Latin America due to the introduction of various programs by the World Bank and other bodies that brought about market liberalization.

Following the 1980s’ debts that caused crises in various Latin-American countries, concerned parties identified the need to privatize the management of previously nationalized entities and thus began adopting market-oriented economic policies (Solimano & Soto, 2005).

In the 1990s, Latin America witnesses a significant change in the manner of management of capital-intensive sectors such as telecommunication. Financial shortages and the lack of adequate investment in various aspects of technology are some of the crucial factors that instigated the shift towards privatization. The previous model of import substitution forced most Latin-American countries to participate in various aspects of importation.

This promoted the adoption and integration of concepts relating to a market-oriented economy. The effects of the debt crisis of the 1980s created numerous barriers that introduced challenges concerning access to financial markets. This resulted in a trend of declining availability of capital in most of the Latin-American countries. Market-oriented policies provided a framework upon which the government could attract sources of capital.

These policies facilitated the privatization of electricity and telecommunication sectors, which were mostly capital intensive. The importance attached to these sectors resulted from the realization of their prospects for expansion due to high demand. Thus, they provided a platform through which the government could achieve its various objectives.

Political reforms in Latin America also influenced the adoption of market-oriented policies. This resulted due to influence by policymakers who promoted new democracies. By the end of the 20^th century, most of the countries in Latin America had adopted a framework based on the three principal concepts used to attract private capital (Bethell, 2008).

The first approach was the privatization of key sectors through the public sale of shares or concession contracts that transferred the ownership and administration of various capital-intensive entities. The other method was the elimination of restrictions that hindered the influence of private capital on public monopolies. This strategy facilitated the generation of investments that availed capital and promoted the operation of various sectors.

The third approach was the drafting of regulations, and the establishment of bodies to ensure that private investors adhere to the set standards and rules. Another factor that led to the adoption of market-oriented reforms in Latin America was the influence of international financial institutions. These institutions gained significant control in the region due to their role as the primary source of credit for the capital-deficient Latin America.

The lack of funds for various government projects presented an opportunity for the involvement of financial institutions in technological modernization as an aspect for generating fiscal assets. However, the adoption of market-oriented policies varied among different countries in Latin America. For example, while Chile adopted the reforms on electricity at around 1982, Mexico adopted such reforms in 1999 (Frieden et al., 2000).

In addition, although Costa Rica was successful in its attempts to privatize telecommunication, Argentina failed to achieve similar goals that year. These discrepancies also arose concerning the outcomes of market control. Some countries adopted the monopolistic aspect of market regulation. However, countries such as Mexico adopted the fixed-term monopoly concepts and other aspects that promoted market-controlling reforms.

Although the adoption of various economic reforms in Latin America face challenges, the outcome of the implementation of those reforms positively transformed the region and introduced significant levels of self-sufficiency.

While the economic recession-induced the onset of the industrial imposition, adverse effects associated with import-substituting industrialization promoted the need for other economic reforms that would guarantee the survival of Latin-American countries in both the local and global economies. Although economic reforms were crucial in Latin America, a narrow scope that focused mainly on the local economy introduced hindrances that necessitated the re-evaluation of Latin America’s economic policies in the global perspective.

References

Bethell, L. (2008). The Cambridge history of Latin America. Cambridge: Cambridge University Press.

Cárdenas, E., Ocampo, J. A., & Thorp, R. (2000). An economic history of twentieth-century Latin America. Houdsmills, Basingstoke, Hampshire: Palgrave ;.

Frieden, J. A., Pastor, M., & Tomz, M. (2000). Modern political economy and Latin America: theory and policy. Boulder, Colo.: Westview Press.

Solimano, A., & Soto, R. (2005). Economic growth in Latin America in the late 20th century: evidence and interpretation. Santiago, Chile: CEPAL, Economic Development Division.