Great Depression versus the Current Recession
1. How did the Great Depression start?
The great depression originated in the united states in 1929, the stock market crashing was a big part of the depression, because in the 1920’s people had a lot of money from working in the war so they invested in the stock market when the stock market crashed they lost all their money, so people started to get scared and tried to sell their stocks, but no one was buying, also the banks had invested their clients savings and when market crashed , they had to close and when more and more banks closed people started to panic.
2. How did the Current Recession start?
The current recession started in 2008 in the United States
3. How did the government take part following the event? Where are they successful attempts?
The governments were trying to help the world get out of recession but all their plans seemed to fail. US had a new president; Roosevelt closed all the banks and only let them reopen once they were stabilized. Roosevelt started to establish programs that became known as the New Deal. The new deal was to help the farmers and agriculture, but also to help unemployment. It’s uncertain if the new deal actually helped us get out of recession but to the citizens of the US Roosevelt was a hero. In the current recession government has made stimulant projects the like Canadian economic action plan. Canada is trying to create more jobs for its citizens, in my opinion I think the government is doing a better job in this recession than the great depression because a lot more people were homeless and people have even started looting for money and food stealing for food, but in this recession though people don’t have a lot of money they are still some how making it and are still getting food and shelter.
4. What factors are present now that were not present during the Great Depression? Ex banking, online resources, etc.
They are a lot of new technologies now than the time period of the great depression. We have online banking which can be a great thing or a very bad thing because all of our information is on the computers and if the commuter are down or is the memory is lost all of or information will be two, in the other had computers make our lives easier and if we need to find out something its easier to search up in the computer. Also a new thing that was not discovered in the 1900 was credit cards. Credit cards are a big part of our lives now pretty much everything we buy is on a credit card, this is becoming a problem for the people who can not pay off the debt and need to go into bankruptcy.
5. How did these two affect United States
Each recession affected the United States gross domestic product, in the great depression the untied states were giving loans to other countries especially Germany, in the 1920 the untied states were at the top with 1 billion dollars in their gross domestic products. But when there soldiers came back from the war and there stock market crashing they lost a lot of gross domestic product. Though they lost a lot of GDP they were still one of the countries with the highest GDP. In the current recession the GDP of the United States have gone down but not as much as when the great depression. the united states and the world has learned from the great depression so if another depression happens it will not hurt a country as bad and the countries GDP will still be good.
6. Reflection: In your own words, tell me which one has made more of an impact on the word.
In my opinion I think that the great depression made more of an impact on the world because, none had ever experienced a recession this bad and the government and the people didn’t know what to do to make this situation better. The great depression turned into a learning experience on how to handle such a big issue. With technology this recession was not as bad the government had taken control and tried to stimulate the economy, like the Canadian action plan. In the great depression you herd stories like people had to fight for food and people going from one city to another just to find work or food. So I believe that the great depression had a bigger impact on the world.
No comments:
Post a Comment