This website uses cookies to ensure you have the best experience. Learn more

Recession Or Depression Essay

4118 words - 16 pages

An entire planet in a veritable state of panic. A worldwide economic crisis that affects almost every human being on the planet. A stock market that fluctuates, oscillates, and takes another nosedive every time we turn on the nightly news. Major corporations, the foundations of Americas economic strength in the world for decades have begun to falter, some have even fallen entirely. AIG, General Motors, Chrysler, Home Depot, Caterpillar, Merrill Lynch, Fannie Mae, Freddie Mac, corporations considered too large and too networked within the web of the world economy to ever fail, have. Credit has been virtually frozen by banks and lenders because of almost an entire decade of predatory lending practices by less than responsible financial institutions like Bank of Wachovia.As a result, average Americans cannot obtain mortgages for new homes, small business owners cannot get credit for the purchase of products and materials they need, and more and more people everywhere have either had to take a pay cut, a voluntary leave of absence, or had their salaries frozen in order to help do their part to stem the tide in the hope that the world economy will not come to a screeching halt.World-wide other highly-industrialized nations keep watchful eyes on the economy on a daily basis as well. Nations like China, Germany, and Japan, all world economic leaders themselves, have lent the United States so much money over the past few years that their economic fate is now tied to ours. The United States government has made several bailout attempts thus far, with the stock market showing little response to the stimulus packages. A bailout for the banks, the stimulus check for the average citizen, a bailout for the auto and insurance companies, and now talk of possibly yet another stimulus check for the average citizen. All made ineffective due to widespread rumors of scandal and corruption. Bonuses paid out to top executives with government funds under the auspices of fulfilling contractual obligations instead of being used to keep corporations afloat have only damaged the perception that all is not lost. The economy, according to many experts, is on an unstoppable downward spiral the likes of which has only been seen before during The Great Depression of the 1930's.Yet, is that assessment an accurate depiction of where we are in the world today? Could we really be headed for such an economic breakdown that here in America the unemployment rate will again top 22%? Are we merely months away from standing in a soup line? Is our planets destiny doomed to repeat the past? I would submit to you that the situation we are in now, while dire, is nothing compared to the plight of our ancestors that was suffered last century. My thesis is that while times may be rough, a look back in time at the leader of the U.S. and the mechanisms his Administration put in place during the Great Depression in order to prevent another from ever happening will hold up. A compare and contrast if...

Find Another Essay On Recession or Depression

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

Fiscal and Monetary Policy Before During and After the “Great Recession” of 2008

874 words - 4 pages depression again. So what can our nation do to prevent or avoid another economic disaster? There are six things the Fed can do to prevent another recession: 1. Cut interest rates: Cutting interest rates help to boost aggregate demand 2. Preventing home repossessions: Freezing mortgage rates could help prevent foreclosures 3. Expansionary Fiscal Policy: Tax cuts and higher government spending on capital investment projects. 4. Devaluation: A

Great Depression

1122 words - 5 pages Great Depression, investors could easily buy stocks on margin, or borrow money from banks to buy stocks. Banks guaranteed the margin loans and foolishly accepted the risks. On Black Tuesday, so many investors tried to withdraw their stocks that the banks ran out of money. Before the Great Recession, the Carter administration ratified legislation to support homeownership for all citizens. The government encouraged mortgage providers along with

Housing, Bank Balance Sheets and the Great Depression

590 words - 3 pages not have. In the Great Recession the housing decreased more than anything. From 1997 to 2005 a momentum (the rate of acceleration of a security's price or volume, Investopedia) was driven. In 1997 no more capital gains taxes on houses up to half million dollars. The Bubble started in 1991. Proposition #2: Disequilibrium in the Great Depression (1930-1940) as a Household/Bank Balance Sheet Crisis: Disequilibrium in the Depression was fueled by a

Repercussions of the Great Recession and the Impact of Unemployment Towards the Medical Conditions and Family Life in the United States

1307 words - 5 pages (downturn), depression (slump/trough) and recovery (Hallam & Reed, 2005). Commencing, the basic definition of a recession is essential for the reader to comprehend: A recession is that part of the trade cycle characterized by falling levels of demand, very little investment, low business confidence and rising levels of unemployment…the official definition of a recession is two successive declines in quarterly GDP (Lines, Marcousé, & Martin, 2003

The Great Recession

801 words - 3 pages economy and prevented a further decline into a second Great Depression, it still left tens of millions of Americans “out of work, under- employed or earning significantly less” (Scaliger, 2013). According to a report released by Sentier Re-search, the average household income has declined by 4.4 percent since the end of the recession in 2009 (Scaliger, 2013). The challenge for the U.S. Government was to begin to cut into the high rates of long-term

In the Wake of the Great Recession: Long-Term Effects of Fiscal Policy

2183 words - 9 pages be evaluated is known, the problem, purpose, and significance of the study will be discussed. Finally, a detailed discussion on the approach to, and findings of, the study is included. Generally, a recession is an economic decline or a decrease in activity in the economy (BLS, 2012). The recession at the forefront of Americans’ minds is the Great Recession which has been noted to be the lengthiest “since the Great Depression” (Auerbach, Gale


1019 words - 5 pages the GPD is down then the country is seen to be in recession. (Kollewe, 2009). The most recent recession in the UK kick-started in 2008, which was seen to be one of the worst recessions the UK has seen since the Great Depression. In July 2008 was when it became increasingly obvious that we was about to enter a recession; the unemployment rate kept rising, the housing industry started to cut thousands of jobs and the whole-sale industry was

The Great Recession of 2007: Job Discrimination in the United States

1440 words - 6 pages In December of 2007, the United States entered a recession that was ignited by the global financial crisis. A recession is a period of decline in economic activity. The Great Recession, as Americans referred to the recession of 2007, was the longest recession since the Great Depression (Homan & Matthews , 2008). With inflation occurring and the housing market in shambles, Americans struggled to live during this horrific period in U.S. history

The Great Recession

1209 words - 5 pages Great Depression. ("The Great Recession", 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

Austrian Business Cycle Theory in The Great Depression by Mary Ruthbard

966 words - 4 pages over several months or years in an economy organized on free-enterprise principles”. These cycles have three main characteristics; expansion, recession, and depression. Expansion is known as increases in the demand for capital and consumer goods. Recession is known as the time when an economy slows down, and the level of sales and production start declining. Depression is know as the Demand for products and services decrease, forcing companies to

Similar Essays

Great Depression Vs. The Great Recession

1909 words - 8 pages have contributed to the Great Depression such as World War I, the Federal Reserve, Black Tuesday, banks failures , or protectionism (Kathy Gill) the default position blamed the private sector (Harvey). History: Great Recession Flash forward 79 years and a great Recession looms over America. Causes of this “Great Recession” mainly focused on the housing bubble (Harvey). Home owners began to take out mortgages on their property and the mortgage

The Depression, Recession, And Business Cycle

2341 words - 9 pages , will it happen again? In just the past two hundred years, the United States has seen “Black Friday” in 1869, “The Great Depression” in 1929, and the most current recession of 2009. Recessions, depressions, inflation, economic boom, these are all terms used to describe the financial events that have taken place in the United States as far back as 1819. Known as the first major recession, an economic boom took place just after the war of 1812

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

Comparing The Great Depression To The Great Recession

1230 words - 5 pages 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