Comparing the Great Depression to the Great Recession Essay

Comparing the Great Depression to the Great inlet - Essay ExampleEconomists have often compared the two stinting bad that have alter pile throughout the world. This physical composition shall provide a comparative discussion on the two economic phenomena and ladder parallels and differences on the two. To achieve this, the essay shall provide an outline understanding of the events that lead to the 1930s not bad(p) depression, and the economic policy responses that were executed to handle the situation, and thereafter provide an understanding of the events that precipitated the 2008-2009 recession and the policy responses. Finally this paper shall provide a discussion of the major points raised by analysis of both phenomena.The exact gain of the market crash that lead to the great depression in the 1930s has been a subject of great debate, in as much as most economists contend that the 1929 New York market crash was dependable the smokescreen of the great depression however, t he crises are more complicated and multifaceted (Eichengreen et al., 53). The great depression affected both bit of the world economy manufacturing, agricultural, financial, political and social, and it is deemed the longest crisis with grave consequences. Much like the world(prenominal) financial crisis that occurred in the late 2000s, the United States led the way, and soon spread to the rest of the world. After the depression World War, the period in the 1920s was synonymous with a economic boom, and the world economy was enjoying a period of improved growths, and in a similar manner the United States experiencing high growths was being referred to as the roaring twenties. The economic boom created a situation in which stock prices rose in every sector of the United States, and was not only confined to real estate in fact, Galbraith (16) insists that between may 1924 and December 1925, there was an average of eighty percent rise in stock prices. To maximize their income on in vestment that were escalating, investors borrowed heavily, but economic theory always predicts