Essay about The Great Depression And Great Recession

933 Words Dec 4th, 2015 4 Pages
The Great Depression officially started on October 29, 1929 after the stock market crash, and the Great Recession started in 2008 after the government pushed buying houses onto people. The Great Depression and Great Recession has almost seven decades between them, so some people would never think they would be similar. They might even say the President has learned from the Great Depression, so the economy will never get like that again. The economy almost did in the Great Recession. When comparing the Great Depression to the Great Recession, they have similar beginnings, similar responses by the president, and similar outcomes, but the differences are in the details.
The Great Depression and Great Recession started the same because of the governments influence, but were different because of how exactly the government had influence. The Federal Reserve Bank, bankers, and politicians did not act accordingly before and after the stock market crash to significantly correct the stock market fall (Scaliger). With the artificially low interest rates until 1929, to stop investment, Hoover signed the Smoot-Hawley Tariff and large tax increases into law to lessen the trade and exports of America (Folsom). “Debts were written in fixed dollar amounts, and so deflation-family prices, wages, and profits – made it harder for farmers, businesses, and households to repay loans (Samuelson).” The Great Recession began when the government started pushing home ownership onto uncreditworthy…

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