Thursday, June 9, 2011

The Great Depression Vs The Great Recession

Many have heard the conversations of comparing The Great Depression to The Great Recession.  As you can see in the chart above, there are major differences in the outcomes.  Why do you think there are such major differences?  What has prevented the U.S. economy from resulting in another Depression era?  Did we learn from The Great Depression?  I'm curious to hear others' opinions about how we improve today's economy.  What do you think we need to do to get us out of The Great Recession?

The Great Depression: Federal Regulation

There were numerous events that occurred before, during and after the Great Depression that caused great impacts within the United States.  One of the major events was what is known as "The Dust Bowl."  It was called this due to a severe drought that caused hardships for the farming community.  Due to the drought and improper farming processes farmers were unable to produce crops.  As a result, farmers were unable to produce revenue and were unable to repay loans to banks.  Another major event was the Stock Market Crash.  The Stock Market Crash had a tremendous impact on the U.S. and the working economy.  It was the cause of huge monetary losses to institutions, individuals and unemployment.  During this time there were no Federal Regulations in place to the U.S. economy.  What measures did the U.S. Government take as a result of the Great Depression to provide more security and stability?