The Comparison Between Recession and Great Depression

THE COMPARISON BETWEEN GREAT DEPRESSION AND RECENT RECESSION AND THEIR EFFECT IN CUSTOMER SERVICE The Great Depression had a great impact in the United States economy from 1929 to the late 1930s.Many people lost their jobs, savings, and homes. They were not sure about their future. Also, at the end of 2008, the United States and many developed countries faced a great recession than had paralleled the Great Depression, such as: excessive credit given to normal citizens (which was promoted by Federal Reserve Bank), irresponsible money spending by the people in the United States that spread to the most countries in the world, the stock market crash, and the failure of the real state market. Although, the lessons that governments learned from the Great Depression made them to be creative in preventing the 2008 recession becoming another great depression, or at very least try to postpone this issue by being united to bail out private sectors specially financial institutions. It is very interesting that all the developed countries ignored to correct many problems that could prevent the 2008 recession. After the First World War, Germany and many other European countries tried to recover from the great financial damage that was caused by the war. They needed money to rebuild their countries, and the United States started to give excessive line of credits to the above countries. Also, because the United States’ economy was booming by growth in the industrial sector which brought many people to work for factories and auto makers. Gradually, many companies started to solicited to sell their product on credit instead of cash, and in the beginning of the 1920s , more families were getting familiar with getting installment loans to buy their needed products. Also, many banks started to loan farmers which brought a great amount of cash flow for many farmers. Furthermore, this economy boom made the rise in the stock market. It was for the first time that the