The Great Depression of 1929 vs. the Great Recession of 2008

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The Great Depression of 1929 Vs. The Great Recession of 2008 In America there have been great economic struggles and triumphs. The many great leaders of this country have foraged, failed, and overcome some very difficult times. Comparing the Great Depression of 1929 and the Great Recession of 2008 has revealed similarities that by learning from our mistakes in 1929 could have prevented the latest recession. I will discuss the causes of the Great Depression and the Great Recession, and what policies were implemented to reverse the economic downfalls. The Great Depression of 1929 is said to have many causes. In an article on Martin Kelly states there were five main causes of the Great Depression. First is the stock market crash…show more content…
Total unemployment rose from just over three percent in 1929 to just over twenty five percent in 1933, and did not increase back up to just over seventeen percent in 1939. By 1933 wages had fallen in every industry, with construction being affected the worst, where wages had dropped by half. Wages in 1933 were twenty five percent lower than in 1929. These decreases in wages caused decreases in purchasing across the board. Durable and nondurable sales alike decreased. Nondurable goods fell by forty one percent, where durable goods suffered the most and declined by sixty two percent. In the midst of the depression farmers also had a difficult time where usually they would have been able to survive. Unfortunately, the Great Plains were hit hard with both a drought and dust storms. The dust storms destroyed everything in their paths, leaving farmers without their crops. Small farmers were hit the hardest. Even before the dust storms hit, the invention of the tractor drastically cut the need for manpower on farms. The small farms were usually already in debt, borrowing money for seed and paying it back when their crops came in. When the dust storms damaged the crops, not only could the small farmer not feed himself or his family, he could not pay back his debt. Banks would foreclose on the farms and the farmer and his family would be both homeless and unemployed. Millions of people were out of work across the United States. Many people hit the road
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