Group 1 - The article discusses the rise of consumer products in the 1920s in the United States, highlighting how items like washing machines and radios became standard for the middle class [1] - The U.S. government and banks encouraged consumerism and borrowing, leading to a culture of spending beyond one's means [3] - The disparity between productivity growth and consumer spending capacity prompted companies to advocate for loan-based consumption to avoid excess inventory [3] Group 2 - The stock market reached a historical peak on September 3, 1929, with the Dow Jones Industrial Average hitting 386 points, a sixfold increase since 1921 [7] - Following this peak, the market experienced a significant decline, with a 10% drop the day after the peak, initially perceived as a normal correction [7] - The infamous "Black Thursday" on October 24, 1929, marked the beginning of a severe stock market crash, leading to widespread panic selling [8][9] Group 3 - The economic downturn resulted in a four-year-long Great Depression, with 140,000 businesses and 10,000 banks failing by 1933 [10] - Unemployment soared to 13 million, drastically affecting the lives of many Americans, leading to extreme poverty and desperation [12] - Families resorted to extreme measures for survival, including rationing food and bartering, reflecting the dire economic conditions [14] Group 4 - The economic crisis in the U.S. quickly spread to Europe, with the UK experiencing over 32,000 business failures and 3 million unemployed by 1933 [14][16] - Initially, France believed it could avoid the crisis, achieving record exports in 1929, but soon faced severe economic decline starting in 1931 [16][17] - France's economic recovery lagged behind that of the U.S. and UK, with its crisis lasting until 1935, two years longer than the others [18]

Core Viewpoint - The article draws parallels between the historical Prohibition era in the United States and current economic challenges, highlighting how extreme policies can lead to unintended consequences and societal issues. Group 1: Historical Context of Prohibition - The Prohibition era began in 1920 with the aim of reducing alcohol consumption and improving societal morals, but it resulted in increased crime and a thriving black market for alcohol [2][4][6]. - The initial goals of Prohibition, such as reducing crime rates and improving public health, were not achieved; instead, the government lost tax revenue and incurred high enforcement costs [3][20]. - The rise of organized crime, particularly figures like Al Capone, was fueled by the lucrative illegal alcohol trade, leading to significant societal and economic impacts [12][16][17]. Group 2: Economic Implications - During Prohibition, the average annual alcohol consumption in the U.S. increased by 50%, and prices for alcoholic beverages skyrocketed, with beer prices rising by 700% [21][22]. - The government spent millions on enforcement, yet the lack of regulation led to dangerous practices in alcohol production, resulting in increased health risks for the public [21][22]. - The economic downturn during the Great Depression contributed to calls for the repeal of Prohibition, as restoring the alcohol industry was seen as a way to stimulate the economy and create jobs [22][23]. Group 3: Modern Parallels - The article suggests that current U.S. policies, such as tariffs and trade restrictions, are reminiscent of Prohibition, as they may lead to increased burdens on ordinary citizens and encourage alternative methods to circumvent regulations [24][25]. - The historical lesson indicates that extreme policies can exacerbate existing problems rather than resolve them, highlighting the need for more balanced approaches to economic challenges [24][25].