What Is Great Depression Compared To The Great Recession

     The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought

While There Are Many Similarities Such As Bank Crisis’s, High Unemployment Rates And The Great Loss Of Consumer Confidence, There Are Still Great Differences Such As, Today’s Government Seems To Have Quicker When A Rescission Starts, And The Fact That The Great Depression Ended Because Of WWII, If Debt Can End By War, How Come The National Debt Is Not Paid Off Yet, I Wonder?

The Great Depression and Recession of 2009 is two events that will remain in our memories forever. The Great Depression and Recession of 2009 were similar in that unemployment rates and bank failures were both causes , yet they differed in the dust bowl and speculation that cause the Depression but was not a factor in the Recession.

The Great Depression happened soon after the stock market crash in 1929. The stock market crash sent Wall Street into a panic which wiped out all inventors. 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed, unemployment reached a record high (Staff n.d.). The Great Depression started in the U.S but quickly into a worldwide slump. Thousands and thousands of banks across the country failed (Freedman 2005).

The recession of 2008 is also called the ‘Great Recession’, said to have begun in December 2007, and took a turn for the worse in September 2008, and it was a severe economic problem expanded globally. This recession affected the world economy, and is said to have been the worst financial disaster since the Great Depression. The decline in the Dow Jones this time was -53.8%. Since the official start of the recession in December 2007, and through June 2010 there have been about 2.3 million homes foreclosed in the United States. In 2012, the state with the most foreclosures in January alone was California, with 51,584 houses being repossessed. Unemployment during this collapse was 8.5%, and continued to increase to about 10% as of 2010. People’s reaction to this recession was a huge decrease in spending and borrowing from banks, but an increase in saving.

The Great Depression was hard and full of suffering but when you take a closer look that time period gave us a lot of things that helped make the united states what it is today. America in the 1930’s was like a yoyo. There were some inevitable downs but the hard times ended and we always came back up. The decade long financial crisis showed us how to change our economy with a positive impact. People respond to change with adversity and creativity. Adversity provides new opportunities to learn and advance. The Depression brought our nation together and set us with a common goal in mind; fix our nation.

During the Great Depression they had the Dust bowl that caused a big change for them. THe Recession had the housing bubble it was also called the National Housing Act that was passed by Congress in 1934 and set up the Federal Housing Authority (“HUD.Gov by the U.S. Department of Housing and Urban Development”). This agency encouraged banks, building and loan associations, etc. to make loans for building homes, small business establishments, and farm buildings. If the FHA approved the plans, it would insure the loan (“National Housing Act by John Simkin”). The Most of the borrowing that took place during the housing bubble was mostly mortgage debt. Low interest rates and the expanded availability of mortgage loan especially “subprime” mortgages which extended credit to borrowers with weak financial records—made home ownership more attractive and attainable for millions of Americans. With the expectation that home prices would keep rising, people not only bought more houses, they also bought bigger houses and accelerated renovations of existing homes (“Cause the great depression by Muddy Water Macro”) .The recession was an economic downturn which means nothing was an order doing this time.

The Great Depression took an enormous toll on the people living through it. The people living through the great depression had to suffer for years with little income and pocket-sized savings. People were obligated to, “cut back on everything possible.” Farmers lost money due to no rain for crops to grow, and nevertheless tried to take out loans from the government. Some buildings like the Marion Building and Loan went bankrupt, putting jobs in jeopardy. The people living through The Great Depression learned to live with almost nothing. The people were able to pull the economy together and stop The Great Depression, but consequently the bad majorly outweighs the good.

The Great Recession began in December 2007 and ended in June 2009 making it the which longest recession ever since World War II. During the Great Recession the real gross domestic product (GDP) fell 4.3 percent from the peak which was in the fourth quarter of 2007Q4. The unemployment rate rose to 9.5 percent from 5 percent and then rose more to 10 percent in October of 2009.Real estate prices such as house prices fell 30 percent while the net worth

The Great Depression happened to do a considerable measure with the economy, Including the business numbers dropping enormously. The Great Depression ranked as the worst and the longest period of high unemployment and low business activity in the 1900 's. Banks, factories, and shops closed. Millions of people were left jobless and penniless. unemployment had risen from 8 to 15 million (roughly 1/3 of the non-farmer workforce) and the gross national product had decreased from $103.8 billion to $55.7 billion. Many people had to depend on the government or charity to provide them with food.

The Great Depression first started as early as 1928, but did not affect the United States until 1929. The Great Stock Market crash started the event of the Depression here in America, but was not the main cause to why it happened. During the early stages of the depression, President Hoover failed to help the economy and continued with his belief system of giving people the least help they needed, so they can earn themselves a rightful spot with pride, not with government’s help. The Great Depression was a very intense experience for us, even until today, the

George Santayana, a Spanish poet and philosopher said, "Those who do not learn history are doomed to repeat it." This quote applies to the Great Depression of 1929 and the Great Recession of 2008. There are many similarities between the two, like the causes, the actual events, and the aftermaths. Several factors led to the Great Depression, which were the following: overproduction by business and agriculture, unequal distribution of wealth, Americans buying less, and finally, the stock market crash of 1929. The Great Recession also had similar factors leading to it, like the housing “bubble” burst and less consumer spending. In both events, the Presidents enacted programs that they believed would help the American people.

market prices in the New York stock exchange in October 1929. During the next few years

First of all, the Great Depression made many people lose their jobs. The people lost their jobs because the economy was slowing and the people needed more money. The economy was slowing because the more people without jobs,

The Great Depression and Great Recession were two unique events that had monumental impact on the economy. Both had similarities, and differences that made them unique. The Great Depression was caused by people living on credit, and when it was time to pay they didn’t have the money, this happened on a wide spread scale. The crashing of the stock market was what officially started the Great Depression in 1929. The great recession was caused by subprime mortgages as well, as risk taking by financial institutions. Much like the depression people were living over their heads, and when it was time to pay their bills they were unable to. Both the Great Depression and Great Recession were brought on by bubbles, for the Great Depression it was the stock market bubble, for the Great Recession it was the housing bubble.