Comparing Recession to Great Depression
Goslin – Research Paper.
The Great Depression was a harsh global economic depression in the decade prior World War II. The Great Depression, while it happened far before the “Great Recession” of 2008, it can be greatly compared. During the Great Depression, all income, tax revenue, and prices dropped. International trade decreased by more than 50%, and U.S. unemployment climbed to just above 25%. Industrial cities like Detroit and Pittsburgh took the heaviest hits. While the recession of 2008 was not as drastic, it affected the world economy and resulted in a global recession more so than ever before. The percent of U.S. citizens unemployed had reached 10% as of 2009. Along with the challenges unemployment presented, consumer self-confidence, the decline in home values, and an ever-increasing federal debt were also prominent problems. The causes of the Great Depression are more obvious than those of the recession, being the stock market crash of 1929, bank failures, and the notorious Smoot-Hawley Tariff. The causes of the 2008 recession can be tied to the dangerous sub-prime loans, the decisions of the Federal Reserve, and again, the failure of banks and the economic stimulus plan that followed it. While the Great Depression started under president Hoover, Roosevelt is given the most credit for trying to repair America from the Great Depression. Obama’s “solution” to the recession was the economic stimulus plan, which spent 700$ billion tax-payer dollars to save banks from closing. The big question here being, could we face another global recession or a second Great Depression in the future? The Great Depression had overwhelming outcomes for the rich and the poor in almost every country. All monetary factors such as income, and tax revenue took a dramatic downfall, and international trade declined by over 50%. The decline in the Dow Jones industrial average was -89.2%. The percent of unemployed people in the United States was between 25% and 30%, which was a
The Great Depression was a harsh global economic depression in the decade prior World War II. The Great Depression, while it happened far before the “Great Recession” of 2008, it can be greatly compared. During the Great Depression, all income, tax revenue, and prices dropped. International trade decreased by more than 50%, and U.S. unemployment climbed to just above 25%. Industrial cities like Detroit and Pittsburgh took the heaviest hits. While the recession of 2008 was not as drastic, it affected the world economy and resulted in a global recession more so than ever before. The percent of U.S. citizens unemployed had reached 10% as of 2009. Along with the challenges unemployment presented, consumer self-confidence, the decline in home values, and an ever-increasing federal debt were also prominent problems. The causes of the Great Depression are more obvious than those of the recession, being the stock market crash of 1929, bank failures, and the notorious Smoot-Hawley Tariff. The causes of the 2008 recession can be tied to the dangerous sub-prime loans, the decisions of the Federal Reserve, and again, the failure of banks and the economic stimulus plan that followed it. While the Great Depression started under president Hoover, Roosevelt is given the most credit for trying to repair America from the Great Depression. Obama’s “solution” to the recession was the economic stimulus plan, which spent 700$ billion tax-payer dollars to save banks from closing. The big question here being, could we face another global recession or a second Great Depression in the future? The Great Depression had overwhelming outcomes for the rich and the poor in almost every country. All monetary factors such as income, and tax revenue took a dramatic downfall, and international trade declined by over 50%. The decline in the Dow Jones industrial average was -89.2%. The percent of unemployed people in the United States was between 25% and 30%, which was a