Essay on Depression: Great Depression and Total Farm Income

Submitted By ChelseaHepler
Words: 694
Pages: 3

One question has been lingering on for years; one question that has led to many debates; one question that has people searching for an answer. Everyone can agree times do start to get hard here and there. One of the most devastating times in history was experienced due to the crash of the stock market (Black Tuesday), October 29th, 1929. This led to what is now known as The Great Depression. Within the last five years, Michigan has endured financial and economic hardship; however, it would not be considered a depression. This becomes evident when comparing, total farm income, unemployment rates and divorce and marriage rates during The Great Depression, to recent figures Michigan. Farming was and still is a way of life. Between 1930 and 1935, nearly 750,000 farms were lost through bankruptcy or sheriff sales (facts.randomhistory.com, The Great Depression) Total farm income during The Great Depression decreased by $324.60 per year. Today Michigan’s farming income is up around $1,400 million. (Federal Reserve Bank of St. Louis, research.stlouisfed.org) It can clearly be seen through the average farming income, Michigan in the last five years has not sunk so low to be reflected as a depression. Also, people lose their jobs all the time; that’s just how the economy is always going to be. Not nearly as many people lost their jobs as in Michigan from 2005 to now as they did during The Great Depression. Unemployment rates reached a downfall of 25% (notes). The unemployment rate in Michigan in the last five years has only reached 7% (U.S. Bureau of Statistics, Unemployment in the U.S).With an 18% difference from The Great Depression to the past five years in Michigan; unemployment rates have not put Michigan through another depression. “The last five years our economy has been strong in the Landscape industry. People are staying home and planning landscape projects due to the fuel increase. As a company no cut backs, I spend money to make money! Currently I have fifteen employees. My relationship with employees is based on responsibility and trust. Each day of work my employees knows my expectations. Landscaping is a seasonal business and employees at some point are laid- off. Employees are entitled to unemployment benefits. I would not consider Michigan in a depression. People need to quit making excuse and start working!”(Kill, Jerry, Moonhill Landscaping Business Owner) It takes a lot of time and money to put on a wedding costing around $20,000 (Weliver, David). Same goes to going through a divorce $10,000 in modern day Michigan (Rich, Larry). During 1929-1939,…