How Is the Current Recession Acting Like/Unlike the Great Depression
How is the Current Recession Acting like/unlike the Great Depression
Shao Shuai
ECO 473
Dennis Foster
November 30th, 2009
How is the Current Recession Acting like/unlike the Great Depression Nowadays, the economy of the world plunges into an awkward situation. The entire world meets a global economic crisis or recession, especially in the United States. After World War Ⅱ, this recession is the biggest recession for the America. Most of people express worried about this recession; absolutely they recall the memory about the Great Depression which was the most enormous economic crisis in the American history. They are anxious because it seems like the United States is going through another Great Depression or will go through another Great Depression. From the history, everyone knows how serious the result came out from the Great Depression; it baffled human beings’ development. No one wants to see another Great Depression happen again. However, there are sufficient reasons to support public people to worry about the Great Depression will happen again, because present recession and the Great Depression, both of them have some similar characteristics. Meanwhile, both of them have much unlike points also can prove the Great Depression will not happen again. In this paper, I will compare and contrast the current recession and the Great Depression, I will prove the current recession causes the effects will much less than the Great Depression, and the Great Depression will not replay. Back to 1929~1933, on October 29 1929, the “Black Tuesday” came to the United States. On this day, American financial world crashed, the stock’s price fell from top to bottom, fell 40 percentages from 383, also the Dow Jones stock index fell 22 percentages(Baidu, 2009). From this date to November 13th 1929, there was thirty billion disappeared in the market, this number equal to the total expenses of World WarⅠ. However, the crash of the stock market was just the
Shao Shuai
ECO 473
Dennis Foster
November 30th, 2009
How is the Current Recession Acting like/unlike the Great Depression Nowadays, the economy of the world plunges into an awkward situation. The entire world meets a global economic crisis or recession, especially in the United States. After World War Ⅱ, this recession is the biggest recession for the America. Most of people express worried about this recession; absolutely they recall the memory about the Great Depression which was the most enormous economic crisis in the American history. They are anxious because it seems like the United States is going through another Great Depression or will go through another Great Depression. From the history, everyone knows how serious the result came out from the Great Depression; it baffled human beings’ development. No one wants to see another Great Depression happen again. However, there are sufficient reasons to support public people to worry about the Great Depression will happen again, because present recession and the Great Depression, both of them have some similar characteristics. Meanwhile, both of them have much unlike points also can prove the Great Depression will not happen again. In this paper, I will compare and contrast the current recession and the Great Depression, I will prove the current recession causes the effects will much less than the Great Depression, and the Great Depression will not replay. Back to 1929~1933, on October 29 1929, the “Black Tuesday” came to the United States. On this day, American financial world crashed, the stock’s price fell from top to bottom, fell 40 percentages from 383, also the Dow Jones stock index fell 22 percentages(Baidu, 2009). From this date to November 13th 1929, there was thirty billion disappeared in the market, this number equal to the total expenses of World WarⅠ. However, the crash of the stock market was just the
References: Baidu. 2009. The Great Depression Retrieved from http://baike.baidu.com/view/722656.htm Huxuan. 2009. The Act of the Great Depression Retrieved from http://liudeliang.blog.hexun.com/24135483_d.html Xu, Qicheng 2009. The Great Depression will not happen again. Guangming Daliy Su, Dongxu 2009. Curren Crisis and the Great Depression. East Daliy Techch. 2009 The Great Depression Retrieved from http://www.techcn.com.cn/index.php?doc-view-50115 Wikipedia 2002. BLACK TUESDAY OCTOBER 29th 1929 REVISITED? Retrieved from http://www.depression2.tv/chronicles/black-tuesday.pdf Wikipedia 2009. Recession Retrieved from http://en.wikipedia.org/wiki/Economic_recession Wikipedia 2009. Subprime mortgage crisis Retrieved from http://en.wikipedia.org/wiki/Subprime_crisis