The Great Depression: Similarity In Generations

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Similarity in Generations

Isaac Newton, an English scientist once said, “What goes up must come down”. In our daily lives we rely on a paper money to be able to pay for any goods and services. In order to understand macroeconomics, it 's crucial to have a clear definition of what money is. Money is an asset, property, and resources owned by someone or something. Money is an important feature practically in every economy. It plays an important role in the daily life of a person whether it is a consumer, a producer, a businessman, a broker, a politician or an administrator. In the early 1920’s, the Roaring Twenties, was the period of sustained economic success with a distinctive cultural edge. This was an era before the Great Depression and
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This crash began the worst depression ever in U.S. history. President Herbert Hoover, the man blamed by many for this crash, named this tragedy the Great Depression. The Great Depression was the largest economic collapse in American’s history in the 21rst Century. It started in 1929 and it ended by 1940. The stock market crash occurred because people took out loans while they were in a position where it would be nearly impossible for them to pay the loans back. A large number of American families purchased automobiles, refrigerators, vacuum cleaners and similar household products on credit. Many American simply did not have anywhere near enough cash to pay for all they had purchased, yet they still bought it. Installment buying serves was one of the major causes of the Great Depression. During the Great Depression, many banks failed to cover bank deposits, lost their money, and also the American people lost their hard earned lifetime savings. On October 24, 1929 Arthur Reynolds, Chairman of Continental Illinois Bank of Chicago said, "This crash is not going to have much effect on business." This statement was not true. Not only were the business effected, this crash stretched throughout the globe and affected the rich as well as the poor. In 1933, President Franklin D Roosevelt spoke with hopeful words to the American people giving them hope, to many that was all …show more content…
Therefore the rich did not have to pay a lot of taxes on their annual income.
It’s interesting to study the many parallels between the Great Recession and the Great Depression. The effects of the Great Depression and the Great Recession are very similar. Both have suffered a high unemployment rate, many banking institutions failed, and many houses were foreclosed. A large majority of Americans lost all their savings, many people homeless and many starved. Many residents were laid off from their jobs and had to make lifestyle changes as the result of the recession today, but nothing as drastic as what people had faced during the great

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