Great Depression Vs Great Recession
The Great Depression vs. the Great Recession
Although both the Great Depression and Great Recession of 2008 are similar since they both had severe psychological effects and the deregulation of banks, and they differ in that the Great Depression occurred because of unequal distribution of wealth whereas the Great Recession occurred due to the push of becoming a homeowner regardless of credibility. If the United States wished to avoid future economic calamities, then its leaders should focus on providing all individuals with better education.
One similarity of the Great Depression and Great Recession is that they both had severe psychological effects. For instance, the family stress model includes long-term poverty which leads to children having …show more content…
Americans who had no jobs borrowed money they could not pay back to buy houses. The unprecedented borrowing of American households was facilitated by innovations in mortgage lending that fueled a bubble in home pricing. Rising home prices generated more home equity which allowed even more borrowing (Muddy Water Macro). Finally, the housing bubble burst when interest rates rose and refinancing stalled, forcing more homeowners to sell. Home prices began to fall which led to lenders fearing default and a cut off of credit. With refinancing decreasing and home prices declining, over-extended homeowners began to default on their mortgages (Muddy Water Macro). Americans borrowing money to buy houses they could not afford to pay back was one of the many leading causes to the Great …show more content…
By teaching and informing all individuals more, the United States would be able to avoid repeating the past for a third time. Therefore, if education is corrected at all age levels, the problems of the past may stay in the past. One way of possibly improving education is by implementing more STEAM programs into schools; these programs are meant to further explore and teach students about the fields of science, technology, engineering, art, and mathematics. The ultimate goal is to help shape “students’ imagination and [teach] through hands-on STEM projects” along with “applying creative thinking and design skills [for] adulthood” (Feldman 2). In addition, replacing electives with career and trade classes gives the youth of America and society a better future. For example, the classes that could be offered to high school students could consist of researched based and technology classes. Encouraging adults to continue their education after high school and beyond college gives them a better chance to never be in poverty. The tasks of the past are not the tasks of the future; therefore adults must continue to advance their trade skills for the current demand so they can be better contributors of
Although both the Great Depression and Great Recession of 2008 are similar since they both had severe psychological effects and the deregulation of banks, and they differ in that the Great Depression occurred because of unequal distribution of wealth whereas the Great Recession occurred due to the push of becoming a homeowner regardless of credibility. If the United States wished to avoid future economic calamities, then its leaders should focus on providing all individuals with better education.
One similarity of the Great Depression and Great Recession is that they both had severe psychological effects. For instance, the family stress model includes long-term poverty which leads to children having …show more content…
Americans who had no jobs borrowed money they could not pay back to buy houses. The unprecedented borrowing of American households was facilitated by innovations in mortgage lending that fueled a bubble in home pricing. Rising home prices generated more home equity which allowed even more borrowing (Muddy Water Macro). Finally, the housing bubble burst when interest rates rose and refinancing stalled, forcing more homeowners to sell. Home prices began to fall which led to lenders fearing default and a cut off of credit. With refinancing decreasing and home prices declining, over-extended homeowners began to default on their mortgages (Muddy Water Macro). Americans borrowing money to buy houses they could not afford to pay back was one of the many leading causes to the Great …show more content…
By teaching and informing all individuals more, the United States would be able to avoid repeating the past for a third time. Therefore, if education is corrected at all age levels, the problems of the past may stay in the past. One way of possibly improving education is by implementing more STEAM programs into schools; these programs are meant to further explore and teach students about the fields of science, technology, engineering, art, and mathematics. The ultimate goal is to help shape “students’ imagination and [teach] through hands-on STEM projects” along with “applying creative thinking and design skills [for] adulthood” (Feldman 2). In addition, replacing electives with career and trade classes gives the youth of America and society a better future. For example, the classes that could be offered to high school students could consist of researched based and technology classes. Encouraging adults to continue their education after high school and beyond college gives them a better chance to never be in poverty. The tasks of the past are not the tasks of the future; therefore adults must continue to advance their trade skills for the current demand so they can be better contributors of