Great Depression Vs Great Recession Essay

The Great Depression happened soon after the stock market crash in 1929. The stock market crash sent Wall Street into a panic which wiped out all inventors. 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed, unemployment reached a record high (Staff n.d.). The Great Depression started in the U.S but quickly into a worldwide slump. Thousands and thousands of banks across the country failed (Freedman 2005).

The Great Depression Was A Time Of Unemployment, Sadness, And A Time of Hunger. Many Parents Struggled To Even Feed there Kids A Meal, Let Alone Find A Decent Job. The Stock Market was doing nothing but declining Rapidly, The Stock market lost 8-9 billion in value. In my Opinion the primary Start of the great depression was the "Black Tuesday", That was the day the stock market fell and lost billions of dollars. People began to hold small rallies, Despite The rallies the stock market continued to decline And get worse. Many People became homeless and incapable of feeding Themselves let alone feed there children. The unemployment rapidly jumped to 20 percent. Many people went from town to town, searching for jobs that simply did not exist.

As incoming Presidents, Roosevelt and Obama were handed down several of the same issues. Both Presidents acquired economic problems. Roosevelt inherited the Great Depression, while Obama inherited the Great Recession. In comparison, the Great Depression that Roosevelt inherited was more severe then the financial issues that Obama had coming into office. Not only did the Great Depression last longer than the Great Recession, but unemployment and poverty was at an all time high point. “By 1932, one of every four Americans was unemployed; in many large cities, nearly half of the adults were out of work” (Shi and Tindall p. 913). Hundreds of thousands of people lost their homes or farms and a large numbers of banks failed (Shi and Tindall p.913).

The Great Depression lasted from 1929 to 1940 and had a deep and lasting impact on the lives of those who lived through it. Even after prosperity returned, those who lived trough the crisis never forgot the worries and struggles. To this day historian and economists disagree on the exact causes of Great Depression. However agricultural problems, the collapse of the bank, easy credit, businesses closing down and unemployment rising all played a big role during the Great

The Great Depression started in the late 1920’s. It was a time of economic relapse. This Great Depression turned out to be the greatest and longest in history lasting approximately ten years. The Great Depression suddenly occurred immediately after the Wall Street Crash. Many say that the Wall Street Crash caused the Great Depression, but failed to realize that the American business was entirely too large to be taken down simply by stock market failure.

The Great Depression was the longest economic recession in the history of the United States. The recession started in the summer of 1929 when stock prices began to rise and also when there was a maldistribution of wealth. Consumers were receiving too little money to spend to keep up with the pace of the growing markets. There were also many other issues that also contributed to the Great Depression, there was a lack of diversification because many people over invested in automobiles and construction.

The Great Depression and Recession The Great depression happened in two different time period which impact the nation as a whole. The great depression happened began 1929-1939 and the great recession 2007-2009. Between them they have similarities and differences.

The Great Depression and Recession of 2009 is two events that will remain in our memories forever. The Great Depression and Recession of 2009 were similar in that unemployment rates and bank failures were both causes , yet they differed in the dust bowl and speculation that cause the Depression but was not a factor in the Recession.

The Great Recession and the Great Depression are the fallout of the exact same economic problems and are only different in a few respects. Each period is marked by a massive run ups in asset prices followed by a crash in the stock market and sent both debt and equity markets down. These periods are said to be the worse economic downturn in the country’s history. During the great depression, as banks failed and threatened to shut down the financial system altogether, President Franklin Roosevelt moved quickly and effectively to address the most dangerous financial crisis of the Great depression. The massive stock market collapse that began in October 1929 erased massive amounts of wealth and because many banks had invested heavily in the markets, and had lent recklessly to speculative investors, the banks found themselves without sufficient capital and in many cases without reserves. He created the New Deal which responded to an unemployment rate that had reached 25 percent, and in some cities as much as 75 percent. He signed the Emergency Banking Act, which allowed inspectors to evaluate troubled banks and decide whether or not they could reopen. The Glass-Steagall Act created a barrier between commercial and investment banking and established the Federal Deposit Insurance Corporation, which guaranteed that citizens would not lose their bank deposits even if a bank failed.

The great depression was a horrible time for americans it was one of the most difficult times in the united states.One of the causes that started the great depression was the stock market crash of 1929 it was a major cause because two months after the original crash stockholders had lost more than 40 billion dollars.Even though the stock market begin to gain some of these losses back by the end of 1930 it was not enough and america truly entered the great depression.Another event that caused the great depression was bank failures.In the 1930s over 9,000 banks failed. Bank deposits were uninsured and banks failed people by losing their savings.Banks that survived were unsure of their economical situation and concerned for their survival.

EQ: What are the parallels between the Great Depression and Great Recession? How can we prevent this economic catastrophes to happen again?

Between 1929 and 1939 there was an economic downfall know better was the Great Depression. According to the Family and Home, Impact of the Great Depression article on encyclopedia.com, The Great Depression challenged American families in major ways, placing great economic, social, and psychological strains and demands on families and their members. Families of various class, ethnic, racial, and regional backgrounds, various styles of marital and familial relationships, responded in different ways to the stresses and demands that they had to deal with. In 1933, the average family income had dropped to $1,500, 40 percent less than the 1929 average family income of $2,300. Millions of families lost their savings when many banks collapsed in the

The Great Depression was caused by the Stock Market crash also known as Black Tuesday, on this day the stock market crashed by seventy five percent. During this time many people took out loans and payed with stocks with credit so they could get rich quick, but when the stocks dropped this low people lost lots of money. This also ruined banks because the people went to the banks to get their money back and the banks didn't have it. In the movie “Cinderella Man” James says how he lost a lot of money in the stocks because he put it all in one stock and it never grew and he lost his money. Another reason The Great Depression was started was because of people trying to live up to the standard of living. This means people would buy things to make

The Great Depression had a large impact on people’s living conditions. After awhile, people were becoming homeless and living off the streets. Their income dropped because the companies they worked for had no money. Most people couldn’t afford to live in their own house so therefore, they became homeless. People borrowed money to invest in the stock market, then in October 1929, the stock market crashed. This caused an economic bust.

The Great Depression and Great Recession were two unique events that had monumental impact on the economy. Both had similarities, and differences that made them unique. The Great Depression was caused by people living on credit, and when it was time to pay they didn’t have the money, this happened on a wide spread scale. The crashing of the stock market was what officially started the Great Depression in 1929. The great recession was caused by subprime mortgages as well, as risk taking by financial institutions. Much like the depression people were living over their heads, and when it was time to pay their bills they were unable to. Both the Great Depression and Great Recession were brought on by bubbles, for the Great Depression it was the stock market bubble, for the Great Recession it was the housing bubble.