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The Great Depression and the Recession of 2008

            It is a common misnomer that people interchangeably use the words recession and depression. According to Investopedia, a recession is defined as a significant deterioration in activities across the economy. This decline in economic activity should last longer than six months. The indicator of a recession is a two quarter consecutive period of declined Gross Domestic product. On the other hand, a depression is defined as a prolonged recession that lasts two or more years. A depression is characterized by economic factors such as increased unemployment, diminished output, and a marked volatility in currency values. In a depression, consumer confidence and investment decrease causing the economy to shut down[inv12]. This paper intends to explore the differences between the great depression of 1929 and the financial crisis of 2008. The paper identifies the causes of the Great Depression of 1929 and the financial crisis of 2008. It further looks at the government agencies relating to human resource that arose from the Great Depression. .
             The Great Depression of 1929.
             The great depression is documented to have been one of the worst economic depressions in the history of the United States. It was a financial decay that started in 1929 and lasted well into the 1940's. It occurred in North America and Europe but affected many countries around the world as well [Dav09].
             Causes of the Great depression.
             The cause of the great depression is attributed to several factors. The stock market crash of 1929 is referred to as spark that ignited the Great Depression. The stock market crash started on October 24th, 1929 with a twenty one percent decline from its previous high. The decline caused a selling panic by investor so that they could salvage some of their investment. This idea did not help the situation because virtually no one was buying. Two months after the decline started, investors had lost over forty billion dollars and the crash was now in free fall.


Essays Related to The Great Depression and the Recession of 2008

1. Recession or Depression?

With talk of major layoffs, bank closings and the stock market plummeting, many people are talking about economics and throwing around terms like recession and depression. ... Despite the feeling nationally in the first half of 2008 that the economy was bad, it was not recessionary. ... Most Americans are familiar with the term because of the Great Depression beginning in 1929, but few people recall the details other than the stock market crash and the rush on the banks in October of 1929. ... Economists would argue that it isn't a depression until it has existed for several years, but po...

  • Word Count: 570
  • Approx Pages: 2

2. The American Recession

Since the Great Depression ended, the Great Recession was the longest and deepest economic downturn. According to the economists, the Great recession has ended officially on 2010, but the impacts of the Great Recession still remain and threaten the world economy today. ... The current recession, which started on 2008, has being called the Great Recession. ... However, the CEOs are not suffering from the effect of the Great Recession. During the Great Recession, many working class people were hurting financially by the layoff, which are for the CEO's. ...

  • Word Count: 774
  • Approx Pages: 3
  • Grade Level: Undergraduate

3. Avoiding Another Financial Crisis

For when the next sharp depression came along, in 1937-38, the economists simply refused to use the dread name, and came up with a new, much softer-sounding word: "recession". From that point on, we have been through quite a few recessions, but not a single depression. ... In 2008, the United States fell into recession following a rapid decline in housing prices and a consequent rapid contraction in credit. ... If we make comparison in history of American economy the credit condition was never this much poor like they poor today except the period of Great Depression. ... Also compared with gre...

  • Word Count: 1664
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: Undergraduate

4. Recession First

In late 2006 and 2007, the greatest financial crisis the world has seen since the Great Depression became a reality and given its eerie similarities this time period is even now being called the "Great Recession."" ... But right now the recession is too pressing. In 2008 43,546 additional businesses filed for bankruptcy (Mantel, 2009). ... One cannot expect the country to come out of the deepest financial meltdown since the Great Depression on its own. The country did not fully recover from the Great Depression until World War II, and the resulting increase in demand. ...

  • Word Count: 1700
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: High School

5. Economics and John Maynard Keynes

Then in 1930's came the Great Depression. ... Up until the Great Depression, problems in the economy were small and eventually work themselves out. ... However, once the Great Depression hit this policy became inadequate which gave rise to Keynesian economics. ... Keynesian economics was first used on a large scale during America's darkest time, the Great Depression. ... For example, Classical economics is often blamed for sub-prime mortgages and the housing crisis which caused the 2008 recession. ...

  • Word Count: 1814
  • Approx Pages: 7
  • Grade Level: Undergraduate

6. The Citi Bank Financial Crisis

In addition to that, this paper also gives a general overview of the situation before, after, and during the crisis. 2008 Financial Crisis, also known, as "The Great Recession" was one of the biggest financial crises in the world history, which lasted from 2007 to 2009, but the effects of the crisis are still being felt today. ... Some people compare the crisis to be close to the 1930s Great Depression, whereas some say that it was even more severe than that. ... Bernanke, a lawyer representing American Insurance Group stated that the financial crisis of 2008 was the biggest in the g...

  • Word Count: 1919
  • Approx Pages: 8
  • Has Bibliography
  • Grade Level: High School

7. Escaping the Great Recession

December of 2007 marked the embarkation of an eighteen-month long global financial crisis, which in turn triggered a recession unprecedented in its slow recovery. Although America has experienced numerous recessions in the past none such have been characterized by such high unemployment along with a snail like rate of growth in GDP. To put it into perspective, "the Depression was the last time in American history that unemployment exceeded 8 percent four years after the onset of recession", coupled with the fact that GDP has grown at less than half the recovery rate compared to previ...

  • Word Count: 2201
  • Approx Pages: 9
  • Has Bibliography
  • Grade Level: Undergraduate

8. The Minimum Wage Hike

In 2008 The Great Recession started and it killed the economy. The Great Recession lasted from December 2007 to June 2009. It began with the bursting of an 8 trillion dollar housing bubble (The Great Recession). ... This was the most dramatic employment increase of any recession since the Great Depression. The unemployment rate chart below shows from January, 2008- Currently National Unemployment Rates, 2008 - 2014 Jan. ...

  • Word Count: 1112
  • Approx Pages: 4
  • Has Bibliography
  • Grade Level: High School

9. The Financial Crisis of 2008

The global financial crisis of 2008 led to the worst recession since the Great Depression of 1929. ... In this paper I will present reasons for the failure of each financial institutions individually which have caused the financial meltdown of 2008. ... What happened in 2008 can't be blamed on a single institution or company. ... The cost to taxpayers could run into the tens of billions of dollars (Appelbaum, Leonnig & Hilzenrath, 2008). ... "Fannie Mae and Freddie Mac enjoyed the nearest thing to a license to print money" (Appelbaum, Leonnig & Hilzenrath;, 2008). ...

  • Word Count: 3971
  • Approx Pages: 16
  • Has Bibliography

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