Great Depression Vs Great Recession Essay

Decent Essays
Determining the most depressing. The Great Depression of the late 1920’s and early 1930’s and the Great Recession of 2007 – 2009 were both times of major loss in the economy of the United States. Whether it is the amount of money lost or the amount of jobs lost they are similar but yet different in a plethora of ways. The Great Recession began in December of 2007 and lasted until June of 2009. The causes of the Great Recession date back from the 1980’s ‘consumer age’, debt from the household income was the primary set-up for the recession, and large amounts of money being borrowed for houses (“Great Depression vs. Great Recession”). On the other hand, the Great Depression began on October 29, 1929 and ended in 1931. World War I, overproduction in …show more content…
It took over two decades, with several smaller recessions in between, to fully impact the economy. On the other hand, it took the Great Depression almost a decade to form (1918 – early 1930’s). Apart from overspending, both events invested in difficult categories. The Great Depression invested in the Stock Market, while the Great Recession (“Consumer Age”) invested in housing (“Great Depression vs. Great Recession”). The Great Depression’s consequences are somewhat like those of the Great Recession’s considering bank failures and unemployment but at a much devastating scale. When World War II ended, the Great Depression’s unemployment rate fell below ten percent. Franklin D. Roosevelt’s “New Deal” was programs and policies “meant” to improve conditions for the people’s suffering. The Great Recession’s federal reserve lowered interest rates in 2008 and later adopted the zero-interest rate policy. Tax rebates were mailed to middle and lower class households to promote spending. The federal Government spent 2.5 GDP in hopes of encouraging the economy (“Great Depression vs. Great

Related Documents

  • Decent Essays

    Mark Twain allegedly once said, “History doesn’t always repeat itself, but sometimes it does rhyme”. The stock market crashes of 1929 and 2008 had many similarities and differences for their occurrence. On October 29, 1929, Black Tuesday hit Wall Street as investors traded around 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression until 1939, the deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time.…

    • 701 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Factors that caused the GDP to shrink were bad saving rates, excessive spending and cheap currency. Not only that, but also bankruptcy declared by some of the country’s largest financial institution causing them to collapse. By march 2009, the Great Recession became fully developed. The stock market lost a huge chunk of its value, more than 50%. Plus, the unemployment rate rose to about 10% from a low rate under 5% (Hawks…

    • 1767 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    The Great Depression began after he stock market crashed in 1929. The stock market bubble popped when 12.9 million shares were traded. The United States was already experiencing a recession after the bubble popped the Dow Jones Industrial Average decreased by 12% starting The Great Depression. Recession Vs. Depression The characteristics of a recession include a decrease in the overall economic activity include; employment, investments and profits. Recessions occur when demand starts to decrease and possibly relating to deflation (falling prices) or inflation (rising prices), or a combination of increasing prices and stagnant economic growth.…

    • 2277 Words
    • 10 Pages
    Decent Essays
  • Decent Essays

    This devotion against gold is one of the reasons people think the depression went on for almost 10 years. The most common theory for the end of the Great Depression was the money put into the economy from World War II. During the depression, currency wasn’t the only issue that impacted the United States. The American people also really struggled with the economy, public health, and jobs. The start of the Great Depression had a horrible impact on the U.S. unemployment and banking industry (Stuckler et al.…

    • 1056 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    This sent Wall Street into a burst and wiped out a large number of financial specialists. The Great Depression (1929-39) was the most profound and longest permanent financial downturn in the historical backdrop of the Western industrialized world. By 1933, when the Great Depression reached the bottom, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed. Unemployment in the U.S. rose to 25% and in a few nations ascended as high as 33%. Even though the relief and reform measures were put into place by President Franklin D. Roosevelt which helped lessen the worst effects of the Great Depression.…

    • 1310 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    The Great Recession

    • 1162 Words
    • 5 Pages

    Marking the end of the longest and deepest recession since World War II. The US economy entered into the recession in December 2007 and exited in June 2009, a total of 18 months. This recession is often labeled the Great Recession, not just for a record-breaking duration, but for the devastating effects on the economy. Due to the magnitude of this recession much time has been spent developing theories on what caused the US economy to dramatically decline. After sifting thought the available data I have come to believe that the recession of 2007-2009 started when the housing market burst.…

    • 1162 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    The Great Recession is a time of economic decline observed in world markets during the early 2000s. It is a period of declining aggregate output in the economy. The majority of consumers not only in America, but also in most Western nations and many other areas of the world have been impacted by the Recession, 86% of the US and almost 55% of Europe. Business cycles affect all of us in immediate and important ways. For example, when output is rising it is easier to find a good job, but when output is falling, finding a good job might be difficult.…

    • 1857 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    The government had a great effect on how bad the economy was during the Great Depression and Great Recession, but the government, both then and now, imposed taxes and poured money into the failing economy. The Presidents both had similar ideas to put money into the economy and pass bills that would hopefully save the economy, but it could be argued that the Federal Reserve did a better job during the Great Recession. During the end of both the Great Depression and Great Recession the economy slowly returned to its previous state, but we did not go to war after the Great Recession. There are disputable similarities and differences in the Great Depression and Great Recession, but the government did learn something from the governments past…

    • 933 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The Great Depression and the Great Recession are two periods of economic contraction both economic and social. A country 's economy is measured with a method called the, business cycle. The Business cycle is a series of cycles in the economy either by expansion or contraction. The Great Depression was actually caused by the economy sky booming, while the Great Recession was caused by rampant unemployment and the burst of the housing bubble. Although the Great Depression and the Great recession are both contractions in the business cycle, they differ in their causes and effects.…

    • 2143 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    Did they have comparable causes and effects? Of course, however it wasn’t ideal that the nation introduced another recession. We can assess that in 1929 and 2007, the Stock Market crashed for similar speculations. Consumer spending and business investment dried up, leaving with less job opportunities. During President Obama 's presidency in the Great Recession, he tried to spring from president Hoover’s and FDR’s presidential policies.…

    • 908 Words
    • 4 Pages
    Decent Essays

Related Topics