Comparing The Great Depression and The Great Recession

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Comparing the Great Depression and the Great Recession
In the 1920s, change was very prominent. The Jazz Age was in effect, women were challenging the views of men all around them by changing their image, and many products such as cars and household appliances were being bought. Women started wearing short skirts, and they started drinking and smoking. These women were called flappers. The image change of women was not the only thing that shocked the United States though. Many of the appliances that were bought in the 1920s were bought on credit. Because many people were buying on credit, manufactured goods were produced plethorically. The over production of goods and the rise of personal debt caused the stock market to crash on October 29, 1929. This date is known as Black Tuesday. The stock market crash was just the beginning of The Great Depression. Although the Great Recession was not as devastating as the Great Depression, it still had a big impact on the economy.
The Great Depression and the Great Recession were very similar to each other. First of all, both were preceded by good economic times. Between 1921 and 1929, the annual real economic growth was at 4.4%, and between 1982 and the 2000s, the annual real economic growth was at 3.2%. This is just one similarity of the two arduous times. Another similarity is that both were preceded by the innovations in consumer finance. In the 1920s, consumer credit was used exorbitantly, and in the 2000s, banks heightened real estate lending and securitization of mortgages. Lastly, both eras were followed by a time where the Federal Reserve was highly valued. The Great Depression and Great Recessions were different in some ways too. The Great Depression lasted 10 years, whereas the...

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