Great Recession Vs Great Recession Essay

954 Words4 Pages
The Great Depression Vs. The Great Recession: Battle of the Heavyweights Writing Assignment #3 Dominique Worthen Dr. Katherine W. Causey Human Resources BUAD 307 The main causes of both crises lie in actions of the federal government with the addition to careless spending of consumers. In the case of the Great Depression, the Federal Reserve, after keeping interest rates exaggeratedly low in the 1920s, raised interest rates in 1929 to halt the resulting boom. That helped choke off investment. Also, President Hoover signed into law the sky-high Smoot-Hawley Tariff, which subdued trade and damaged American exports throughout the 1930s. Finally, the President signed a large tax increase into law in 1932, which halted entrepreneurship. The seeds of the Great Recession were planted when the government in the 1990s began pushing…show more content…
Bush claimed that in September 2008 his chief economic advisors said that “The economic situation could at some point become worse than the Great Depression.” His presidency should be solely responsible for the death of the U.S economy. The unemployment rate in 2008 through early 2009 and the rate at which it rose was comparable to most of the recessions occurring after World War II, but was dwarfed by the 25% unemployment rate peak of the Great Depression. The economic decline of the Great Depression was -26.5%, markedly steeper than our modern recession’s -3.3% decline which was devastating. The extremity of the 1929 decline was enough to shut down more than half of the countries banks, close thousands of businesses, and leave millions with nothing. The numbers reflect that our Great Recession is nowhere near as catastrophic as the Depression, but this could be our modern Depression and we’ll use our American ingenuity to find a way through it. Even though both events were momentous enough to earn the word "great" as a modifier, they really are not that comparable as this chart
Open Document