Similarities Between the Great Depression and the Great Recession Essays

Similarities Between the Great Depression and the Great Recession Essays

Length: 974 words (2.8 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

The housing crisis in America is a major problem plaguing the United States' economy. Before a solution is formulated, one must consider the history of the market and the causes of the problem. And after a solution is formulated, one must present an idea for prevention of the problem for the future.
Many people see similarities between The Great Depression in the late 1920s to the late 1930s. The Great Depression was caused by the Stock Market Crash of 1929. Leading up to the crash was The Roaring Twenties. It was right after World War I. The United States' economy was stimulated by producing things for the war. People seemed to have a lot of money. There were many new technologies and new infrastructure. There was a new concept of credit nicknamed "buy now, pay later." Not long after this concept came to be, the stock market crashed.
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
Leading up to the crisis of the housing market, borrowers got mortgages without understanding the terms. Banks were giving out loans to people the banks weren't sure could pay the money back. The closer to the crisis, the higher the frequency of illegitimate loans and mortgages. Because there were so many mortgages on houses that could not be paid back, millions of mortgages were foreclosed on, and the houses we...

... middle of paper ...

... a loan before the loan is given to the person. Banks need to make sound investments as well. Chances are, the banks are using other people's money to invest in things. Banks should not be allowed to do just anything with money that is not theirs.
Now that we know what needs to be done, why is it not getting done? Perhaps congressmen have become preoccupied or have forgotten. As citizens, we must elect the proper congressmen and other government leaders. We must contact our state's congressmen to remind them and tell them what we want.
In conclusion, we have determined that the housing crisis that the United States faces today is a huge problem. We have discussed the striking similarities between the Great Depression in the 1920s and 1930s and today's problem. And I have presented my solution to the problem and how I think it should be prevented in the future.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Great Depression And The Recession Of 2008 Essay

- Throughout history there have only been two major economic downturns. The Great Depression and the Recession of 2008 both occurred due to poor financial policies and excessive spending. Both events left people with a sense of hopelessness and vulnerability. A comparison of the Great Depression Era and The Recession of 2008 reveals similarities in causes and effects economically, socially, and politically. Life after the war took a toll on many Americans. The destruction of the war caused many people to lose faith in reason and progress....   [tags: Great Depression, Unemployment, United States]

Strong Essays
1712 words (4.9 pages)

Great Depression vs. The Great Recession Essays

- 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....   [tags: history of economics and finance]

Strong Essays
1439 words (4.1 pages)

Essay on The Great Recession

- ... Spending was at a high. However personal income was decreased. The consumers then had to borrow money from the banks. This gave the consumers debt. So, when the house prices rose, banks stopped loaning money to people and the people decreased their spending. This happened because the people were not able to pay the banks back. People also cut back on buying or making new houses, so household demand dropped. Many say that this decrease caused the Great Recession. Housing was one of the main subjects that many believe, caused the Great Recession....   [tags: american farmers, global excess]

Strong Essays
1703 words (4.9 pages)

The Great Depression in "Cinderella Man" Essay

- The Great Depression is seen as one of the most sorrowful and desolate times in the history of the United States. This time was the longest period of recession ever seen by this nation so far. It lasted from 1929 to 1939, over ten years of complete confusion and despondency within the people. Many Americans were affected greatly by this tragic time and sacrificed much of their lives so that they and their families may have the chance to live. This act of desperation can be seen throughout the movie, The Cinderella Man, where a professional boxer, Jim Braddock, becomes crippled by the depression, both economically and spiritually....   [tags: Literary Elements]

Strong Essays
1586 words (4.5 pages)

Recessions and Depressions Essay

- America has experienced several recessions and depressions in the past. Most recently, the housing crisis sparked a recession which has led to rising unemployment. The largest recession so far has been the Great Depression of the 1930s. A stock market crash in 1929 caused loss of savings which led to unemployment, lower wages, and a distrust of the banking system. The affects of it lasted into the 1940s. Franklin Roosevelt was elected president during this period; legislation he passed tried to alleviate the suffering of the public....   [tags: Economy, The Great Depression]

Strong Essays
1661 words (4.7 pages)

Effects Of The Great Recession On The Recession Essay

- The underlying causes of the great recession mostly pertain to the burst of the housing bubble and collapse of several major investment banks. Banks were handing out risky mortgages to unproven borrowers all the time knowing is just was not right. What it all boils down to is an irresponsible consumer borrowing money from a banker without high regards to ethics or morals. The effects of the recession of the recession will be felt for years to come. Unemployment during the recession was at its highest since the great depression....   [tags: Great Depression, Unemployment, Retirement]

Strong Essays
759 words (2.2 pages)

The Recession Of The Great Recession Essay

- December of 2007 saw the beginning of the worst economic downturn in memorable history; not since the end of the Great Depression in 1939 has the world seen such a devastating and long-lasting economic breakdown. The Great Recession shook the public’s faith in the capitalist system and silenced those who claimed a modern economy was impervious to another broad collapse like the one in 1929. Discontent and mistrust from the public has built not only with large corporations and the financial sector, but also with the government whose legislature and policies in recent decades seem to coincide with the interests of private corporate power-houses....   [tags: Great Depression, Business cycle]

Strong Essays
1024 words (2.9 pages)

Essay on The Success Of The Great Recession

- The Great Recession lasted in the United States from December 2007 to June 2009, lasting about 19 months. This was the longest and worst economic recession since the great depression in the 1930’s. The main cause of it is really debatable, but it can be said it started after the attack on 9/11 when the United Sates went to war. A lot of the money the United States was using in for the war and to be used in its economy was borrowed, interest rates were high people were not borrowing money from banks, and banks did not want to take the risk of lending out money to people that had borrowed money because they didn 't want to be the next bank to close down....   [tags: Unemployment, Great Depression, Inflation]

Strong Essays
1343 words (3.8 pages)

The Great Recession Of Recession Essay

- Bonus Paper The Great Recession of 2007-2009 was very harmful to the economy of the United states. Many people lost their jobs and were forced to work at lower wages, so the demand for consumer goods dropped. Homeowners were also hurt because the value of housing and real estate crashed. This decrease in wealth pushed back the retirement age for many people. The financial situation was especially worrisome for my personal household during the Great Recession. My parents had gotten a divorce shortly before the recession began, so my dad had to pay my mom alimony....   [tags: Great Depression, Unemployment, Business cycle]

Strong Essays
1272 words (3.6 pages)

The Crisis Of The Great Recession Essay example

- Why was the government not able to see what was going to happen next in our economy. This was a question many people pondered during the Great Recession. There were eight trends that were mirror image from the Great Depression to the Great Recession. There were four main ones that I believe led to the most problems. The first one being the bank crisis. During the Great Recession people began to panic when they saw the stock market crash. Overnight they instantly wanted all of their money out of the banking system in America....   [tags: Great Depression, Unemployment, Business cycle]

Strong Essays
1139 words (3.3 pages)