A common idea in society is that we should learn from our past mistakes, otherwise history will repeat itself, and that is most certainly true. For example, when the stock market crashed in 1929, President Hoover believed that it wasn’t the government’s job to fix the economy. Therefore, he did little to nothing to solve the money issue. This resulted in what is known as The Great Depression. The important lesson learned from this is that although doing nothing is a choice, that doesn’t mean that the consequences are not going to be severe. If we don’t learn from this grave mistake, our nation could be in huge trouble.
An excellent United States history teacher once taught our class a valuable lesson regarding the cycling of the economic state in our country. He said that it is a process that occurs over a long period of time: our country is at the top and our economy is great. That usually doesn’t …show more content…
Many savings and loans stayed open, banks made more bad loans, and the losses continued to accumulate. The thing that people could take away from this is that if another crisis should occur (which it will), then as soon as they know what the cause of the crisis is, then they should cease what they are doing and not make the same unfortunate mistake of other banks.
It is also important that we remember that credit scores and economic background checks might be necessary. A root of the problem was that banks were giving loans to anybody and everybody, regardless of what they looked like or what their economic past might have been. I’m sure today, that won’t be a problem, since banks are very cautious about who they give their loans to, but in the middle of a crisis, their minds might get clouded with the idea of earning more money being their sole
An excellent United States history teacher once taught our class a valuable lesson regarding the cycling of the economic state in our country. He said that it is a process that occurs over a long period of time: our country is at the top and our economy is great. That usually doesn’t …show more content…
Many savings and loans stayed open, banks made more bad loans, and the losses continued to accumulate. The thing that people could take away from this is that if another crisis should occur (which it will), then as soon as they know what the cause of the crisis is, then they should cease what they are doing and not make the same unfortunate mistake of other banks.
It is also important that we remember that credit scores and economic background checks might be necessary. A root of the problem was that banks were giving loans to anybody and everybody, regardless of what they looked like or what their economic past might have been. I’m sure today, that won’t be a problem, since banks are very cautious about who they give their loans to, but in the middle of a crisis, their minds might get clouded with the idea of earning more money being their sole