Great Depression V.S Recession

1. How did the Great Depression start?
- The stock market crash on 1929
- Bank failures
- Reduction in purchasing
- Overproduction
- High unemployment rate
- Drought occurred in the Mississippi Valley in 1930 and caused farmers to sell their farms
- America put high tariffs to protect American companies and led to less trades with foreign countries



2. How did the recent recession start?
- Increasing oil prices
- Increase price of manufactured products
- Rise in interest rates by the European Central Bank
- Increase of unemployment rate
- People were unable to pay for their mortgages
- Bank failures



3. How the governments take part following the event? Were and are they successful attempts?

Great Depression
- Work-creation programs
- Raise tariffs to protect industries within their own countries
- Poured money into public projects
- Were not successful attempts
- It was the World War II that boost up the economy


Current Recession
- Government helped large companies that were at the edge of bankruptcy
- Lower interest rate
- Increase government spending
- Lower taxes (corporation tax)
- were successful
- less unemployment
- economy getting better


4. Internet, Media, televisions, banking, government support, better social programs, better knowledge on how to response to recession

5. The Great Depression and recent recession both decreased the United States’ GDP.

- United States is the core of the world economy
- Less money flow into the economy
- People save more than spend more

6. I think the Great Depression had more of an impact on the world. The Great Depression lasted for around 10 years. Although the recent recession is still happening for 3 years, it is unlikely that it will continue for 7 more years. A ten-year depression would definitely have a greater impact on the world economy than a shorter period of recession. The reason why I think the recent recession will not last longer than 10 years is the world economy is slowly improving as more money flow into the economy. Another reason is that governments are now gaining more knowledge in how to deal with economy recession from past experiences like the Great Depression, the 1997 depression in Asia, and etc. In that case, countries will not make the same mistakes and worsen the situation.


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http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm