Was The Great Depression Really Similar Again Essay

Is it possible to go through the Great Depression or something very similar again? I believe that it would be very possible to go through it again. Although I don't believe that it would happen the same way it did in 1929. The main cause of the Great Depression in 1929 was the crash of the stock market, which should never happen again because too many people rely on the stock market these days for a source of income and a 401k. When the stock market crashed in 1929 it was because only a small percentage of people invested in the stock market so when prices dropped a little they all tried to pull their money out and panic sold their stocks. This caused the stocks to plummet further and eventually crash. Not only did stock prices crash, but public

This is bad because that means that in the future there will be a shortage of people to work jobs once others pass away or retire. If there are fewer people to work with and that have to pay taxes, taxes will have to be raised which would cause the people on the lower end financially to have even less money. Banks are not like they used to be when the Great Depression happened. Many small banks had lent out large portions of their money to the stock market speculation and were practically put out of business overnight when the market crashed. Banks in the 1920s kept all the money inside of a vault there and everyone's money was in it, So when people started taking all their money out of the bank before they closed down because they were scared the bank had no money to stay in business and had to close down. Banks now are much different than back then because most of the money people bring in doesn’t stay there but their money is kept online/ in the bank system. But that doesn’t mean that they can’t still crash and go out of

Inflation could be a factor in the Great Depression happening again because it is an increase in prices and a fall in the purchasing value of money, which essentially makes money less valuable. It can hurt the US along with the rest of the world badly because it causes the price of goods to rise but not the income of business owners as much as the price increases are. It would make the economy fluctuate by having an increase in prices but less money to provide to purchase those goods and services. In 1913, the Federal Reserve System or Fed was put in place. The Fed is the central bank of the US and is responsible for “monetary policy, managing the payments system, and banking supervision and regulation” ( St. Louis Fed ). It didn’t do anything to stop the Great Depression because it did not use monetary policy to prevent deflation and the collapse of output and employment. Although the Federal Reserve System is a lot more set up nowadays, this doesn’t mean that they are solely going to be able to prevent another great depression from happening, but they will be a factor. Another issue is the broader digital disruption of the