Great Recession Vs Great Depression

1767 Words 8 Pages
Overtime in the U.S., we’ve had two major droughts that have put our country in jeopardy. These events are very relevant and important which are the Great Recession and the Great Depression. Although these elements are different from each other, they’re also similar due to the violence it has developed, the increase of the unemployment rate and so on. But the question is, how are these events similar and different?
The Great Depression started because of a huge crash in the stock market within our society. From 1929-1933 the unemployment rate rose drastically from 3.2% to 25%. Reason being is because the country couldn’t keep up with the production of the full employment of the labor force. The output expected wasn’t reached due to the U.S.
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Many economists became so habitual to low unemployment and mellow growth that they started to become almost absent of awareness (Benati). The Great Recession started in December of 2007 and ended in June 2009. Lets not forget recessions only exist when a country experiences two or more quarters of contraction in their economy. Within the fourth quarter of 2007 the GDP started to shrink which caused the country to head in the direction of the Great Recession. 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 …show more content…
The dominant aspect that involved similarities were the effects the Great Depression and the Great Recession had on society. The people of the U.S. that were considered middle class and poor experienced a tremendous drought. Production was indigent causing individuals to form more suitable spending strategies for their households to meet the living standards. Moreover, each incident had a president come into office to help iron out the obstacles within both catastrophes. Without the leadership of Obama in the Great Recession and Roosevelt in the Great Depression, the nation would’ve probably suffered for a long period of time.
Generally speaking, with this given synopsis of the pair, it has come to my senses that the maturity level of our civilization and professional leaders has to be way above satisfactory. At certain moments things can be going wonderfully, but without the maintenance and awareness, that wonderful enjoyment can become a nightmare. As a superior country, we must keep up with the expectations that needed to be clashed with management. Without participation of everyone, its highly possible for another dilemma to

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