Comparing The Great Depression To The Great Recession

1230 words - 5 pages

Comparing the Great Depression to the Great Recession
The Great Depression and the Great Recession of the early 21st Century have many things in common. The Great Depression and the Great Recession both experienced good economic times before they crashed. Prior to the Great Depression, (1921-1929) the annual real economic growth was at 4.4 percent. Though less, the annual real economic growth prior to the Great Recession was at 3.2 percent. The banks before both times moved into new business lines. In the 1920s banks increased real estate lending and also increased investment banking. Prior to the Great Recession, (1990s-2000s) banks increased real estate lending and the ...view middle of the document...

Though they both said the budget needs balancing, they were under the mindset that the massive spending helps the economy.
Comparing and Contrasting Presidential Programs
A program that F.D.R put in place is F.H.A (Federal Housing Administration) in 1934. F.H.A is a program that provides mortgage insurance on loans on single family and multifamily homes. F.H.A provides protection to home owners from defaulting on the owner’s mortgage loans and if the home owner defaults on their on their payment F.H.A will pay the claim. Another program that F.D.R put in place is the Home Owners Loan Corporation (H.O.L.C) in 1933 to try to combat the Depression. The H.O.L.C is a corporation that’s job is to refinance homes that were to be foreclosed or to default on their payments due to the 1929 crash. The loans that came from H.O.L.C only apply to non-farm houses and for houses worth under $20,000.
A program that Obama put in place in the Great Recession is H.A.R.P (Home Affordable Refinance Program) this program was put in place in 2009. H.A.R.P is also a refinancing program that lets homeowners who are upside-down on their mortgages refinance when other companies would not. These programs goals are to re-spark the economy by increasing residence real estate. They all do this by helping people who could not normally afford a house or keep up with their payments. F.H.A is for people who are going to buy a house but can’t afford the house that they need, H.A.R.P is for people who have a house and would like to refinance to have a better interest rate, while H.O.L.C. would be when a person cannot make the payments to keep that house.
The Agricultural Adjustment Administration (AAA) is a program put in by president F.D.R in 1933. The A.A.A purpose was to increase the cost of farm goods by paying farmers not to plant as many crops so the demand for the farmer’s crops would increase. The A.A.A put out $1,500,000,000 to farmers in the span of 3 years. Though the program did not accomplish much, it was however favored by many farmers. Later the A.A.A was declared unconstitutional. President Hoover on the other hand was in support of farmers and created the Federal Farm Act. With a $500 million budget the act would loan money to farmers to increase the strength and efficiency to create more production. In comparison to the A.A.A program the Federal Farm Act, both gave money to farmers to try to help...

Find Another Essay On Comparing the Great Depression to the Great Recession

The Great Recession Essay

1209 words - 5 pages Great Depression. ("The Great Recession",stateofworkingamerica.org)The United States government needed to do something to help save its economy and help pull its country back out of recession since the consequences that this recession had on the United States were devastating and affected a countless amount of people. That is the reason why the 111th United States Congress in the month of February in the year 2009 passed the American Recovery and

The Great Recession Essay

833 words - 4 pages Many economists have come to consider the 2008 financial crisis as the worst recession since the 1930’s Great Depression. The recession led to the total collapse of financial institutions, the withdrawal of banks by the national governments and the total collapse of stock markets across the world. The housing market also suffered in many areas, which resulted in prolonged unemployment, evictions and foreclosures. The crisis played a key role in

The Great Recession

1544 words - 6 pages In the final quarter of 2008 the world economy started a period of global economic slowdown, which became known as the “Great Recession”. The situation is especially severe in the Eurozone countries. “In 2010, Greece’s GDP dropped from 235 billion euro to 230 billion euro, a 4.5% decline and the unemployment rate hit a record high of 28% in the last quarter of 2013 making it the country’s worst recession since 1974.”(Tsafos, GDP) As a result

The Great Recession - 1186 words

1186 words - 5 pages The Great Recession In 1929 the United States was faced with the beginning of the Great Depression. As the finishing bell rang on Wall Street on what become known as “Black Tuesday” the Dow Jones Industrial Average dropped thirteen percent and the following day dropped another ten percent. This was the beginning of one of the worst decades in U.S. history. Over the next four years unemployment would sky rocket from three percent all the way

The Great Recession Of 2007

3273 words - 13 pages , the Glass-Steagall Act kept the banking and investment industries separated. This act came after the great depression when regulators called for separate industries. Then in 1999, they wanted to repeal this act because they believed they were smarter now and would not let another incident happen like it did in the 1930's. But as you can see, they abused the deregulation and let the greatest recession happen since the depression (Montanna 2010

Unemployment and the Great Recession

1568 words - 6 pages workforce loses jobs. This is what has been going on since December 2007. Unemployment is one of the biggest problems that governments have to deal with. (compston 2002). The end of the year 2007 marked the beginning of the great recession. When recession began about 4.9 % of the population had no jobs. Over the years, increase in youth unemployment has been on an increase. By the end of 2008, the worst impacts of recession were eminent

The Current Great Recession - Who Is To Blame

2118 words - 8 pages In the midst of the current economic downturn, dubbed the “Great Recession”, it is natural to look for one, singular entity or person to blame. Managers of large banks, professional investors and federal regulators have all been named as potential creators of the recession, with varying degrees of guilt. No matter who is to blame, the fallout from the mistakes that were made that led to the current crisis is clear. According to the Bureau of

the great depression

714 words - 3 pages other countries were affected just kept the depression going were also played a part. The resulting period ranked as the longest and worst period of high unemployment and low business activity in modern times. The Great Depression was the worst economic slump ever in U.S. history, and one that spread to virtually the entire industrialized world. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and

The Great Depression

1296 words - 5 pages between the rich and the middle class. While there are many theories to what caused the Great Depression; all of these factors played a role in the Great Depression. The European nations industry had been devastated during the war and they relied on the United States for most goods. The American industry increased production during the war to meet the demand but over production after the war hurt the American industry and agriculture. The

The Great Depression Essay

1279 words - 5 pages Many adolescents, In the Great Depression, received the full affects and suffered. Some were left hungry, impoverished, and hopeless, how are adolescents today compared? The 30’s were a time of great distress for many Americans. Events such as the stock market crash, an economy suffering from being inflated, overuse of credit, a farming crisis, and other events led America to the economic downfall known as the Great Depression. During the great

The Great Depression

1913 words - 8 pages an especially severe recession in which people hoard money no matter how much the central bank tries to expand the money supply.(show overhead of seventh paragraph) In that case, he suggested that government should do what the people were not: start spending. He called this 'priming the pump' of the economy. Indeed, most economists believe that only massive U.S. defense spending in preparation for World War II cured the Great Depression.(Show

Similar Essays

Comparing The Great Depression And The Great Recession

1140 words - 5 pages 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

Great Depression Vs. The Great Recession

1909 words - 8 pages 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

Similarities Between The Great Depression And The Great Recession

992 words - 4 pages 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

The Great Recession Essay 801 Words

801 words - 3 pages Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to