Comparing The Great Depression And The Great Recession

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The Great Depression and the Great Recession have been the greatest economic disasters in American history. They have created many problems for the American people. Some argue that these events could have been prevented. The economic cycle will always allow for both failure and success. These events however, were created not by chance, but by mistakes made by leaders. One event happened in the 1920s another happened in the 2000s. This paper will compare and contrast the two events. The Great Depression was not caused by the stock market collapsing, but had a huge part in bringing poverty to the people. Back then there were no restrictions or regulations on the stock market and eventually it failed. This caused people to lose all of their invested money. This stopped investment,…show more content…
An effect of the Great depression was the highest unemployment rate of 24.9%, the highest ever in United States history. ("THE GREAT DEPRESSION STATISTICS." Www.Schmoop.com. Web. 11 Sept. 2015. . ) A final effect of the Great depression was large amounts of poverty. Many people were without jobs because of the high unemployment rate. This resulted with many loosing their homes and entrepreneurs losing their businesses. The Great Recession at the time was costing many people their jobs. At the time there was many businesses that began to lay-off their employees. Another part of the great recession was the large federal spending. The president saw the recession coming and tried to spend money in order to save businesses to keep people employed. This resulted in even more trouble because the spending was useless. This only caused drops in employment and many lost their insurance coverage. The recession also effected other countries as well. They were trade partners with the U.S. and if America lost money, so did they. One important thing to compare between the two is the

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