The Great Depression VS. The Great Recession
When comparing the Great Depression and the Great Recession we can see that at both times, both Presidents have blamed both the stock markets for the failing economy. With that the Presidents used a lot of money to bail out big businesses and take money and funds from the places were already struggling to meet ends meet. And with that, we see a lot of job loss in both the Great Depression and the Great Recession. In the Great Depression, there was a 25% drop in employment. Whereas in the Great Recession, there was an 8.5% drop in employment.
Both the Great Depression and the Great Recession were preceded by a great and flowing economy. Before the Great Depression, the annual economic growth was 4.4% and for the Great Recession, the economic growth was 3.2%. Also during both the Great Depression and the Great Recession, both were preceded by the movement of banks into new business lines. This is because during the 1920s, banks were up in real estate lending and investment banking. And during the Great Recession, 1990s to 2000s, banks ramped up real estate lending and securitization of mortgages (sub-prime mortgages).
The Great Depression and the Great Recession are very similar but they are still very different from each other. The Great Depression was cause by consumers who were borrowing money irresponsibly. The Great Recession was caused by banks who would lend money irresponsibly.
During both the Great Depression and the Great Recession, the Federal Reserve was highly regarded. With this we can see that even though the Great Depression was far worse than the Great Recession, they both followed after a good economy.
When contrasting the Great Depression and the Great Recession we can see that there were many differences in how the government approached the issues. During the Great Depression, we can see that 50% of banks failed whereas in the Great Recession, only 0.6% of banks failed. This lead to President FDR having to create many programs that were either going to pull the economy out of the depression or make it worse. There were many programs that were created and with them, the country was able to pull itself out of the Great Depression.
The New Deal was the introduction to all of the programs that President FDR had in store for the country. During the Great Depression, we saw that the new programs had a big impact with everyone and the economy because this was the first time that something like the Great Depression had happened and the first time where the government had to make many stern choices. This is why the programs that were made in the Great Recession weren’t as beneficial and helpful as the programs in the Great Depression.
Another major crisis that happened in both the Great Depression and the Great Recession was the change in how items were priced. During the Great Depression, prices dropped an average of 25% and in the Great Recession, prices raised 0.5%. We also see that there are the same factors that applied as the price changes. This is because there was an increased supply of money through the Federal Reserve. During the Great Recession, the Federal Reserve money supply rose 125%, while during the Great Depression, the Federal Reserve money supply rose just about 17%.
We can see that the issues that have happened in the Great Depression was far worse than the Great Recession.
When comparing the Great Depression and the Great Recession, we can see that with the Great Depression, the government was very inexperienced and shocked that something like this could happen to the economy of the United States. With that, when Franklin D. Roosevelt came into power, he decided that he had to spend money in order to fix the economy. He also set foundations and expected requirements that are used even today to help thrive the failing economy. With this, we can see that when the Great Recession came over it had a small impact than the Great Depression because of the set foundations and expected requirements that President Franklin D. Roosevelt put forth. And with these foundations, President Barack Obama was given an ease to how to come about the Great Recession. He also used a lot of money to fix some of the growing problems in America but he showed more composure and did not let the public in on some of the work that he was doing like President Roosevelt did. If there were to be another situation like the Great Depression and the Great Recession, we could see that there would be less chaotic and newly found problems because both PResident Barack Obama and President Franklin D. Roosevelt had the time and willingness to pull the economy out if its poor state. Something like the Great Depression and the Great Recession is like to happen again.
Both the Great Depression and the Great Recession were preceded by a great and flowing economy. Before the Great Depression, the annual economic growth was 4.4% and for the Great Recession, the economic growth was 3.2%. Also during both the Great Depression and the Great Recession, both were preceded by the movement of banks into new business lines. This is because during the 1920s, banks were up in real estate lending and investment banking. And during the Great Recession, 1990s to 2000s, banks ramped up real estate lending and securitization of mortgages (sub-prime mortgages).
The Great Depression and the Great Recession are very similar but they are still very different from each other. The Great Depression was cause by consumers who were borrowing money irresponsibly. The Great Recession was caused by banks who would lend money irresponsibly.
During both the Great Depression and the Great Recession, the Federal Reserve was highly regarded. With this we can see that even though the Great Depression was far worse than the Great Recession, they both followed after a good economy.
When contrasting the Great Depression and the Great Recession we can see that there were many differences in how the government approached the issues. During the Great Depression, we can see that 50% of banks failed whereas in the Great Recession, only 0.6% of banks failed. This lead to President FDR having to create many programs that were either going to pull the economy out of the depression or make it worse. There were many programs that were created and with them, the country was able to pull itself out of the Great Depression.
The New Deal was the introduction to all of the programs that President FDR had in store for the country. During the Great Depression, we saw that the new programs had a big impact with everyone and the economy because this was the first time that something like the Great Depression had happened and the first time where the government had to make many stern choices. This is why the programs that were made in the Great Recession weren’t as beneficial and helpful as the programs in the Great Depression.
Another major crisis that happened in both the Great Depression and the Great Recession was the change in how items were priced. During the Great Depression, prices dropped an average of 25% and in the Great Recession, prices raised 0.5%. We also see that there are the same factors that applied as the price changes. This is because there was an increased supply of money through the Federal Reserve. During the Great Recession, the Federal Reserve money supply rose 125%, while during the Great Depression, the Federal Reserve money supply rose just about 17%.
We can see that the issues that have happened in the Great Depression was far worse than the Great Recession.
When comparing the Great Depression and the Great Recession, we can see that with the Great Depression, the government was very inexperienced and shocked that something like this could happen to the economy of the United States. With that, when Franklin D. Roosevelt came into power, he decided that he had to spend money in order to fix the economy. He also set foundations and expected requirements that are used even today to help thrive the failing economy. With this, we can see that when the Great Recession came over it had a small impact than the Great Depression because of the set foundations and expected requirements that President Franklin D. Roosevelt put forth. And with these foundations, President Barack Obama was given an ease to how to come about the Great Recession. He also used a lot of money to fix some of the growing problems in America but he showed more composure and did not let the public in on some of the work that he was doing like President Roosevelt did. If there were to be another situation like the Great Depression and the Great Recession, we could see that there would be less chaotic and newly found problems because both PResident Barack Obama and President Franklin D. Roosevelt had the time and willingness to pull the economy out if its poor state. Something like the Great Depression and the Great Recession is like to happen again.