Thursday, November 16, 2017

Comparison between Great Depression and Great Recession



Here's a link to my info graphic (don't know if it works)

There are many similarities and differences between the Great Depression and the Recession, one obvious one being in different decades. It was especially shocking that something like this would occur not once, but twice. Some similarities between them were the economic collapses it caused, even though it varied in the level of economic destruction it caused, it still managed to lead a good number of people into unemployment and poverty. First of all, the causes of these two events were very different in regards to the money aspect: GD was caused by the stock market crash, due to people and business firms only selling off their stocks rather than trying to invest and buy them, while GR was caused by the mortgages that people all over US had since they were trying to borrow money to buy all these houses and other things included. Another difference in addition to this was that people who were in the GD hoarded these money made from stocks and didn’t give them up to help the financial situation while people in GR kept asking for more and more money to borrow, which ultimately led them into high levels of debt. Between the Great Depression and Great Recession, despite their differences, they also had a couple similarities as well. Regardless of when both these events happened, they both caused similar industries, such as automobiles, building materials (cement, metal, steel, oil, etc), to collapse and have varying levels of net worth drops. As the consumers start to stop consuming and buying goods, the business starts to crash, leading to higher levels of unemployment, which leads to even less consumers. This whole cycle of economic problem is easy to start but not easy to stop.


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