Great Depression vs. The Great Recession
analytical Essay
1439 words
The Great Depression versus the Great Recession Since being founded, America became a capitalist society. Being a capitalist society obtains luxurious benefits and rather harsh consequences if gone bad. In a capitalist society people must buy products and spend money to keep the economy balanced, but once those people stop spending money, the economy goes off balance and the nation enters a recession. Once a recession drastically takes a downturn, the nation enters what is known as a depression. In 2008 America entered a recession and its consequences were severe enough for some people, such as President Barack Obama, to compare the recent crisis to the world’s darkest economic depression in history, the Great Depression. Although the Great Depression and the Great Recession of 2008 hold similarities and differences between the stock market and government spending, political issues, lifestyle changes, and wealth distribution, the Great Depression proved far more detrimental consequences than the Recession. After World War I America became the world’s center for trade. The economic center of the world moved from London, England to New York City, New York, United States of America, and more specifically Wall Street (Buhle, Mari J, Czitzrom, Armitage 848). Due to women, the 1920’s marked economic and social change in America. Women took over men’s jobs during the war while their husbands were overseas, and once the men came home the women wanted to keep their positions. To show gratitude to these women Congress passed the 19th Amendment on August 18th, 1920 which prohibited any United States citizen from having the right to vote based on sex. This change in women’s social status led to more workers in the factories, which were usi... ... middle of paper ... ...FY 1930." N.p., n.d. Web. 7 Apr. 2014. "How the Great Recession Has Changed Life in America." Pew Research Centers Social Demographic Trends Project RSS. PewResearch, 30 June 2010. Web. 14 Mar. 2014. "Life During the Great Depression." AllAboutHistory.org. All About History, n.d. Web. 09 Mar. 2014. Mulligan, Casey B. "Who Lost Work During the Great Recession?" Economix Who Lost Work During the Great Recession Comments. New York Times, 07 Sept. 2011. Web. 11 Mar. 2014. Reasons behind 2008 Recession. Dir. Jonathan Jarvis. Perf. John Levoff. Crisisofcredit.com, 2012. Reasons behind 2008 Recession. YouTube, 29 July 2012. Web. zShmoop Editorial Team. "Politics in The Great Depression." Shmoop.com. Shmoop University, Inc., 11 Nov. 2008. Web. 13 Mar. 2014. Waggoner, John. "Is Today's Economic Crisis Another Great Depression?" USA Today. N.p., 4 Nov. 2008. Web. 7 Mar. 2014.
In this essay, the author
- Explains that america became a capitalist society in 2008, and compared it to the world's darkest economic depression, the great depression.
- Explains that the 1920's marked economic and social change in america. women took over men’s jobs during the war while their husbands were overseas.
- Explains how the pump and dump scheme led to overinflation of stocks and panic buying. the credit backing crumbled and more money was put up to pay the loans when stock prices decreased.
- Explains that the "great recession" focused on the housing bubble. the mortgage broker would sell the mortgage to a bank and the bank would split it into safe, okay, and risky.
- Explains how the investment groups became greedy and the banks turned back to the mortgage brokers to buy more mortgages. the increase in foreclosed houses caused the price of houses to go down.
- Analyzes how the stock market crashed and government spending differentiated between the great depression and great recession.
- Explains that government spending dropped by more than $3 billion just between 1920 and 1922. people spending money and buying raised consumerism in america which allowed the government to lowed federal spending.
- Narrates forbes magazine's "the great depression and the great recession."
- Analyzes buhle, mari j., daniel czitrom, and susan h. armitage. chapter 24: the great depression and the new deal.
- Explains gill, kathy, and about.com us politics' "what caused the great depression?"
- Analyzes harvey, john t., "the great recession: how we got here (and how to get out)." forbes.
- States that hill, ryan, "total spending us from fy 1920 to fy 1930." n.p.
- Analyzes how the great recession has changed life in america. pew research centers social demographic trends project rss.
- Explains mulligan, casey b., "who lost work during the great recession?" economix.
- Analyzes the reasons behind the 2008 recession. jonathan jarvis, john levoff and crisisofcredit.com.
- Explains the zshmoop editorial team's "politics in the great depression."
- Analyzes waggoner, john, "is today's economic crisis another great depression?" usa today.
Related
- comparative
- analytical
- explanatory
- opinion
- The Great Depression took place during the 1930s and it is considered as the most widespread depression of the 20th century. The financial crisis of 2008 on the other hand is considered as the worst financial crisis happened since the Great Depression. It is also known as 2008 financial crisis and the global financial crisis. This essay will discuss about the comparison between the two crises by looking at the background, causes and policy responses to each crisis.
In this essay, the author
- Compares the great depression and the 2008 financial crisis by looking at the background, causes, and policy responses to each crisis.
- Explains that the great depression started from 1929 until 1939. the us, canada, and western europe were having a booming economy before the crisis.
165 wordsRead More - America's Downward Spiralanalytical essayIn recent years, the economy in the United States has been in what most would see as a recession. American people differ in the way they react to a recession. Some, such as Michael Moore, feel it becomes a downward spiral as big business and it’s stockholders gain more money and power, and it’s workers gain less money and stability.
In this essay, the author
- Analyzes how michael moore's reaction to the recession was to create documentaries, roger and me, pets or meat: the return to flint, and the big one.
- Analyzes how moore targeted big tycoons such as roger smith of gm, phil knight of nike, and companies like johnson controls.
- Analyzes how large companies downsize and close and force the middle class to live below the standards they had been so accustomed to.
- Explains that poverty and downward mobility are not the only problems striking the american working class. mike lafevre shares his views on working in the steel mill during an interview with studs terkle.
- Opines that michael moore is not alone in speaking out about the rising problems facing the american middle class.
- Cites moore, michael, dir. the big one. videocassette. dog eat dog films, 1997.
629 wordsRead More - The Great Recession: The Worst Tragedyexplanatory essayThe Great Recession, known as the worst tragedy that has happened to the United States’ economy ever since the Great Depression back in the 1920s, occurred between 2007 through 2009. According to Investopedia, the definition of recession is defined as, “ a significant decline in activity across the economy, lasting longer than a few months.” In December 2007, the United States noticed its first sign of being in a state of recession when the Gross Domestic Product (GDP) per cita had decrease for two consecutive quarters. The Great Recession, December 2007 through June 2009 marks an unstable 18 months for the United States’ economy. There is countless amounts of people will not ever forget this tragic period for middle to lower class families.
In this essay, the author
- Describes the great recession as the worst tragedy that has happened to the united states’ economy since the 1920s.
- Explains that the federal reserve's low interest rates made it more appealing to americans to take out more loans, which led to a shift in the demand curve.
- Explains that the economists in the government noticed low interest rates and risky loans. they noticed that investors were using these huge loans to buy a number of houses just to resell to home buyers.
- Explains how the low interest rates caused a recession in the united states. the community reinvestment act was intended to inspire depository institutions to help meet the credit needs of low-income neighborhoods.
- Explains that the housing and bank markets were declining from not recouping money off of the bad loans and low interest rates, which caused some major banks and investors to file for bankruptcy.
- Explains that the united states has been on a slow struggle to get back to where it once was in terms of economics. salary and wages declined are still an ongoing result from the great recession.
- Opines that the great recession is the worst tragedy that has happened to the united states since the depression. the housing crisis caused the government to implement new policies.
1302 wordsRead More - ECN 440 Term Paperanalytical essay2007-2008-2009 global financial crisis - many people compared to the experience to another large scale depression - now coined “great recession”
In this essay, the author
- Explains that 1929 - stock market crash was the largest economic crisis that the world had experienced.
- Compares the 2007-2008-2009 global financial crisis to another large scale depression, now coined "great recession".
- Explains the similarities and differences in focus when analyzing the 1929 stock market crash and the 2008 great depression.
- Explains that 1929's great depression negatively impacted agriculture, industrial performance, banking, politics, and society as a whole.
- Describes the 1929 stock market drop and panic selling. the depression lasted 10 years.
- Analyzes how the 1930s smoot-hawley tariff, neoliberalism, and thatcherism led to the global financial crisis.
847 wordsRead More - The 2008 Recessionexplanatory essayThe recession of 2008 had the worst impact on the U.S housing market since the great depression, the total amount of wealth lost by the recession was up to 10.2 trillion dollars, which is almost one fifth of the GDP of the entire world. The recession had a huge impact on the U.S economy, it was a time where almost every american was going to have a lot of problems, which is what made it a huge problem. Since the recession the U.S has been able to make some significant changes that have given some positive impacts to Americans and the economy. Some will agree that the recession was a really impactful time to the U.S ,but others will say that the recession wasn’t as bad as it could've been, but it reality it was actually a really bad time for
In this essay, the author
- Explains that the 2008 recession had the worst impact on the u.s housing market since the great depression.
176 wordsRead More - Throughout American history, there have been numerous recessions. Since 1850, there have been a total of 32 recessions in the United States. Each recession is a dreaded time for the citizens of America, devastating many families. Recessions are part of a business cycle which is a sustained decline in economic activity that contain at least two consecutive quarters of a decline in a country’s gross domestic product (GDP). Common characteristics are loss of jobs, less consumer spending, decrease in personal income and business profits. The 2007-2009 recession and recession of 1973-1975 are two recessions that contain similar properties and differences within the economy.
In this essay, the author
- Explains that since 1850, there have been 32 recessions in the united states. each recession is a dreaded time for the citizens of america, devastating many families.
- Compares the recession of 2007 and 1973, stating that both recessions had spikes in oil, and both had a high peak unemployment rate.
- Explains that different factors impacted each recession at the time, but overall, they follow the same trends as all recessions do.
- Explains that the 2007 and 1973 recessions were caused by banks unable to maintain stability, and the sudden price change of oil from iraq.
- Opines that recessions are a part of history that keeps repeating itself. when interest rates rise, it will be harder for people to get loans and buy real estate.
671 wordsRead More - The Great Recession Versus The Great Depressionanalytical essayThe Great Recession was more complex and widespread damage of financial markets than the Great Depression. The outcome of the Recession wasn’t as disastrous as the Depression because financial policy issues are a lot different and were made to deal with another depression situation, the Feds were much more prepared. Fiscal policy has developed from weak to aggressive and mature each time the stocks plummet.
In this essay, the author
- Explains that the great recession was more complex and widespread damage of financial markets than the depression. the feds were more prepared to deal with another depression situation. fiscal policy has developed from weak to aggressive and mature each time the stocks plummet.
- Argues that the 2008 financial shock was bigger than the 1929 financial crisis. people call the great recession the "greater depression" and "the second great depression".
- Explains that in 2008, 12 of the most important financial institutions in the us were at risk of failure within a week or two. bernanke cut rates lower than they’ve ever been and used liquidity to send the federal balance sheet up to $4 trillion.
300 wordsRead More - Homelessness is No Longer an Issueexplanatory essay"The Great Recession." State of Working America. Economic Policy Institute, n.d. Web. 12 Jan. 2014. .
In this essay, the author
- Opines that the "great recession" isn't over for many of america's youth, though many would disagree considering our president declared its end in 2009.
- Explains that the recession between 2007 and 2009 was hard for almost every american. the u.s. labor market lost 8.4 million jobs in 2008 and 2009.
- Explains that the "great recession" caused over 46 million to have to live in poverty right now. the child poverty rate has increased in over 30 states since the year 2000, with the southern states feeling the repercussions worst than any other region.
- Explains that the u.s. economy catastrophe caused so many families to break up because of the emotional strain that their financial situation had brought upon them.
- Opines that the recession is the only real reason for homelessness. homelessness can be caused by unfortunate personal experiences such as veteran parents who are injured and cant seem to find work or young mothers who don’t have anyone on their side to help them financially.
- Explains that homelessness is a universal issue. a homeless person can come in any shape, size, age, gender, sexuality, and especially color.
- Explains that not everyone is emotionally strong enough to handle a situation as serious as becoming homeless, and that one-third of homeless mothers have had at least one suicide attempt.
- Explains that parents aren't the only ones in the family that have to focus on staying strong. when it comes to health issues, homeless children have the worst.
- Compares the mental/emotional problems of homeless children with those of their parents. homeless children go hungry twice the rate of other children and have high rates of obesity due to nutritional deficiencies.
- Explains that domestic violence is a primary cause of homelessness for women and children. by the age of 12, 83% of homeless children had been exposed to at least one violent event.
- Explains that schooling is another hardship that homeless children have to deal with. some parents aren't able to teach their children the essentials that they need at a young age, causing them to be behind by the time they become adolescents.
- Opines that homelessness is a constantly growing problem in america. putting aside selfish ways to get someone to be happy, healthy, and most importantly, sheltered, can change lives for the better.
- Cites the national center on family homeless, "america's youngest outcasts 2010," and goodyear, sarah.
- Cites statisticbrain.com's "homelessness / poverty stats." national coalition for the homeless, july 2009.
- States strauss, valerie, "record number of homeless children enrolled in public schools, new data show."
- Explains the characteristics and needs of families experiencing homelessness. the national center on family homelessness, dec. 2011.
1285 wordsRead More - Solving the Foreclosure Crisis with Grace Periodsopinion essayEver since the recession we have we experienced a serious economic depression. People loosing jobs that they were going to retire from. A change of location and lifestyle has left thousands of families in America out in the cold. Due to financial hardships homes all over America are experiencing a foreclosure crisis.
In this essay, the author
- Explains that america has experienced a serious economic depression since the recession. people loosing jobs that they were going to retire from have left thousands of families out in the cold.
- Opines that in order to improve the situation, we must devise a plan that will benefit the mortgagee and the mortgagor.
- Explains that a clause can be put in the mortgage contract to prevent future crisis in this area.
- Explains that the six-month grace period clause is great, but the lender can refinance the mortgage contract if needed. hardship can happen to anyone and the borrower may lose their job.
- Explains that the borrower owes $118,000 dollars on a $250,000 dollar home. the grace period clause will be paid off during income tax season and after the refinancing it will take 19 years and 8 months.
- Opines that foreclosure has gone down by 28% since 2008 according to good morning america. buyers that don't exceed $125,000 a year may qualify for an $8000 tax credit.
- Opines that being greedy with high interest rates has caused lenders to be in the financial predicament they are in now.
- Opines that if lenders would lower some of these interest rates and are willing to work with the borrowers, they would make money.
1000 wordsRead More - Impact of Reaganomics on the American Economyanalytical essayAuxier, Richard C. "Reagan's Recession." Pewresearch.org. Pew Research Center RSS, 14 Dec. 2010. Web. 13 Nov. 2013.
In this essay, the author
- Explains that america had fallen into a period of "stagflation" and high inflation, and needed to look to something other than keynesian economics to pull itself out of this low.
- Explains that reagan implemented the first of many tax cuts, based on the principle that tax breaks for the upper echelon of society would encourage investment and spending, creating jobs for lower income individuals.
- Explains that reagan made cuts from public programs in order to focus the federal budget on his military agenda. congress refused his proposals to make massive cuts to welfare programs.
- Explains how reagan decreased inflation by stabilizing the dollar, a method known as anti-inflationary monetary policy. reagan and volcker contracted the money supply, which reduced inflation from 13.5% to 3.2%.
- Explains that reagan was a laissez-faire advocate who believed it was beneficial to deregulate the market and that government regulations interfered with the stimulation of the economy.
- Explains that deficit spending became the backbone of reagan's policies. reagan decreased inflation and increased the national debt from $997 billion to $2.85 trillion during his time in office.
- Analyzes how reagan's economic choices unfairly redistributed the wealth in the nation. the wealthiest 15 of americans' income soared by a rate of 14%, while the poorest
- Explains that even though reagan was very confident about his economic plan many others were weary of his ideas. george w. bush sr. proclaimed reagan’s economic ideas as ‘vood-doo’ economics believing reagan's policy would not live up to its predicted outcome.
- Explains supply-side economics, a general term used to refer to reagan's economic policies, involves taking down barriers, such as taxes, and business regulations, in order to increase supply.
- Opines that reagan's policies have profoundly impacted the republican party. they expanded upon republican belief in state power, and widened the gaps in society.
- Analyzes how the reagan tax cut worked in 1981 and why it wouldn't work today.
1027 wordsRead More