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The End of Affluence

. to have an enormous trade surplus. The railroad was not the only major invention aiding prosperity. The Cotton Gin was another invention that revolutionized the way work was accomplished. This machine separated cotton fibers from seeds speeding labor 2 to 3 times of what it use to take. The introduction of these machines were effective labor saving devices, but unfortunately with every action there must have a reaction. This reaction came in the form of unemployment. Unemployment was not a new issue to the U.S., but it was one that became widespread and rampant. The introduction of new inventions such as the cotton gin relieved thousands of workers from their jobs and drove them into unemployment. This new state of unemployment began to weaken the economy, and with the beginning of a recession, complicated matters further. These complicated issues brought the U.S economy from a small-scale recession, into a large-scale recession.The introduction of this recession, lasted until the beginning of World War I, where it slowly returned to production standards, and then quickly went into a depression in the 1930s, known as the great depression. This economic condition would continue to rise and fall until World War II, where the destruction of Japan and Europe opened new markets for the U.S. In relations to the economy, World War II presented itself as a savior, in the way that government placed great demands on the market, and thus in turn raised productivity rates to a record high. These production rates did not cease with the end of the war, but instead kept on climbing, due to the destruction of Europe and Japan, leaving the global market open for U.S. business. These happy times only lasted until the early 1970s when the introduction of the Oil Embargo took effect, and the crippling of Americas productivity and economic rates began.The enactment of the embargo was not the only reason the U.S. began to lose its productivity...

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