Comparison of the Great Depression (1929-1930) and the Great Recession (2007-2009) Essay Example
Harold Morrow
Mr. Sorotte
Period 4
12/10/10
The United States of America has gone through many different economic ups and downs, 2 of the most horrific downturns being the current recession and The Great Depression last from about 1929 to 1939. While these two deflationary periods in our economy have several differences, they posses many more similarities in the events that lead up to them along with a high unemployment rate and the difficulty in receiving a mortgage or loan from a bank. The origin of these two economic events cannot be blamed on one single person or a group, but on the United States as a whole who neglected to fulfill their economic duties. This comparative essay will show the similarities and differences between The Great Depression and the Recession of the 2000’s.
These two economic hardships posses very similar origins. They both started out with a sharp increase in technological advancements (Econ). Just before the great depression the first automobile was invented. With this came other engine powered appliances like refrigerators and washing machines. The same occurred in the recent recession. When computers first came out they were highly expensive and most people had no need for them. In recent years computers have become an important part of the United States day to day life thus becoming cheaper and more available to the public. One would expect this to help our economy to grow, but not everyone has the money to buy these new technologies upfront so they purchase them on credit.
In the 1920’s it was known as installments, today it is known as the credit card. Both are the same concept, you get the product now, and then you pay back the original price along with a certain amount of interest. It is a great concept in theory, especially since the companies are earning money on the interest but when too much credit is given out it can adversely affect the economy. There is a type of credit known as a mortgage; mortgages are used
Mr. Sorotte
Period 4
12/10/10
The United States of America has gone through many different economic ups and downs, 2 of the most horrific downturns being the current recession and The Great Depression last from about 1929 to 1939. While these two deflationary periods in our economy have several differences, they posses many more similarities in the events that lead up to them along with a high unemployment rate and the difficulty in receiving a mortgage or loan from a bank. The origin of these two economic events cannot be blamed on one single person or a group, but on the United States as a whole who neglected to fulfill their economic duties. This comparative essay will show the similarities and differences between The Great Depression and the Recession of the 2000’s.
These two economic hardships posses very similar origins. They both started out with a sharp increase in technological advancements (Econ). Just before the great depression the first automobile was invented. With this came other engine powered appliances like refrigerators and washing machines. The same occurred in the recent recession. When computers first came out they were highly expensive and most people had no need for them. In recent years computers have become an important part of the United States day to day life thus becoming cheaper and more available to the public. One would expect this to help our economy to grow, but not everyone has the money to buy these new technologies upfront so they purchase them on credit.
In the 1920’s it was known as installments, today it is known as the credit card. Both are the same concept, you get the product now, and then you pay back the original price along with a certain amount of interest. It is a great concept in theory, especially since the companies are earning money on the interest but when too much credit is given out it can adversely affect the economy. There is a type of credit known as a mortgage; mortgages are used