Through the analysis of the “causes” section of my infographic, I can understand that although the Great Depression occurred primarily as a byproduct of the stock market crash and the Great Recession occurred primarily as a byproduct of the housing crisis, both events were heavily tied to the actions (or lack thereof) of the federal government. However, the actions the government took in order to get out of both the Depression and the Recession were vastly different, as my infographic shows that the money supply was only increased by 17% during the Depression and the money supply was increased by a much greater percentage (125%) during the Recession. Perhaps this drastic change in the quantity of money pumped in by the government is correlated with the faster recovery of the Recession. Additionally, we can see that the impact the Great Recession had on America was far less troublesome than that of the Great Depression, as only 0.6% of banks failed during the Recession in comparison to 50% of the banks in the Depression and only 8.5% were unemployed during the Recession in comparison to 25% during the Depression. Overall, my infographic shows that the federal government was better prepared for the Recession than it was for the Depression (perhaps they learned from mistakes made during the Depression), resulting in less bank failures and less people being unemployed.
Folsom, Burton W. “Comparing the Great Depression to the Great Recession.” Fee, Foundation for Economic Education, 20 May 2010, fee.org/articles/comparing-the-great-depression-to-the-great-recession/.
Goldman, David. “Great Depression vs. 'Great Recession'.” CNNMoney, Cable News Network, money.cnn.com/news/storysupplement/economy/recession_depression/.
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