1. How did Great Depression start?
The Great Depression was an economic catastrophe that took place around 1920s, the decade prior to World War II. On October 29, 1929 also known as Black Tuesday, was the official day that it became a worldwide concern when the stock market in America began to decline and crashed. This severe drop in stock prices spread to almost every country in the world creating a huge economic depression. This created a panic in many countries and a lot of people withdrew their money from banks. There was a closure of many banks due to the immeasurable amount of money loss in the stock market. This lead to the widespread closure of businesses which left hundreds of thousands of people without a job.
2. How did the current recession start?
The Current Recession was a major turn down in economic activity that spread across the economy. It started nearing the end of the year 2007 and lasted for several months. This recession caused tribulations in the financial markets and many reductions in the housing markets. American banks giving out too much money to those who were unable to pay back those loans also made a significant contribution to this recession. In the intervening time, there was an increase in unemployment rate; prices for manufactured products and oil were also increasing.
3. How did the government take part following the event? Were/are there successful attempts?
During the Great Depression in the 1930s, the government concentrated on providing and creating social programs and work programs. What the government was doing at that time made a huge and successful contribution towards the growth of social reform. Their attempts to restore the country included placing money in local economies to create more jobs and lower unemployment rates. That money went to raising tariffs to protect industries within the country, which created employment insurance.
Now, in the current recession, the government is continuing to aim for increasing employment rates. Which meant spending billions on our country, helping companies that are financially unstable. The government’s add to new and efficient technology and science towards creating a better economy has definitely made a positive impact on our country. I personally feel that the government’s attempts towards the recession has helped the country a lot seeing that we are currently doing well and seeing less crisis’.
4. What factors are present now that were not present during the great depression? (banking, online resources, etc)
During the Great Depression, there were a number of factors that are present now that weren’t present back then. Some of the most remarkable improvements include online banking, Internet access, credit cards and better government support. Of course these services and access give more convenience for people to make quicker transactions and bill payments.
5. How did these two affect United States’ GDP?
With the combination of both the Great Depression and the current recession, both events make a huge impact on the United States’ GDP. During these times, people ended up spending less and saving more money. People were unable to afford and were not willing to spend money on luxury items that they were able to in the past. The response to the poor consumer behaviours caused many people to lose their jobs. The United States lost a significant amount of money over during the Great Depression.
Reflection: in your own words tell me which one has made more of an impact on the world.
I believe the Great Depression was a larger impact on the world compared to the current recession. Seeing that the event of the Great Depression took place during a time of an undeveloped world it struck harder compared to the recession. At that time, countries were undeveloped and didn’t have as many factors that are present now that weren’t available back then. Also, the drastic increase in unemployment rates compared to the present day rates is completely diverse. With the help of improved technology, science and government systems; compared to the several years old Great Depression our country is at a more stable state.
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