Comparing The Great Depression And The Great Recession

‘Everything that goes up must come down” is a very popular saying that has been proven to be true in the economy and history of the United States. The events of the Great Depression and Great Recession have been two crucial hits in the economy of the country that dropped the country to the floor with such force that it was extremely difficult for the country to get back up on its feet. The Great Depression was the first time the United State’s economy had experience that was so severe and not being prepare for made the situation even worse for everyone. The Recession was not as serious compare to the Great Depression that took place decades before but still caused several people to worry. The Great Depression and the Great Recessions were two

On october 29, 1929, known as “Black-Tuesday”, the stock market crashed resulting in stockholders to lose about 40 billion dollars and is one of the main reasons of the Great Depression. After people losing all their money, bank-runs took place as people rushed banks to take out their savings leading to the point where the banks eventually ran out of money and were closed down in a event that is known as Bank Holiday. Based upon research and from my point of view, the government could have evade this unfortunate events as they knew that the stock market was not working well. In the farms, things were not going well either as the Dust Bowl destroyed most of what farmers made a living with and were basically forced to move to the city looking for a job but since there was no money going around in the country people were not buying enough and therefore most jobs were taken away as they weren’t needed. At this point, the United State’s government was looking for any way to even find the first piece of the puzzle to solve the crisis and they decided to raise tariffs on imported goods and as a result other countries raised prices in United States goods bringing global trade to stop. The Great Depression impacted the country hard as the entire country’s morale was on the floor with ten years of hunger, unemployment,

Just like the Great Depression, the main cause of the Great Recession was the poor flow of money caused by a dramatic change in the ability to create new lines of credit and cheap credit which resulted in the cut of jobs. Since not enough money was flowing in the economy, the house buying drop dramatically as most people would rather walk away from the house than finish paying of their mortgage. Despite being affecting millions of Americans, I believe that the learning from the Great Depression helped this crisis less struggling for not only the people but for the country as well. The United State’s economy was built on credit and that credit dried up when several banks and financial institutions merged with other institutions or were simply bought out to try to survive but some just closed down. Just like the Great Depression, there was a lot of job loss and unemployment in the country with jobs dropping a 6% and 27 million people unemployed. I think the Great Recession of 2008 is a reminder that the United State’s economy can drop at any moment and we should always be careful when it comes to it. The Great Recession was not as severe as the Great Depression but still cause a large number of unemployment and once again, the country’s morale was on the