The Great Depression

1)      The Great depression can be defined as an awful worldwide economic depression in the decade towards World War II. Great depression began in about 1929 and last for a good 10 years. This depression began in the U.S.; fall in stock prices was the first notice of depression.  A few months later the whole stock market crashed which also infected many other countries.

2)      In 2001, the housing market began to pick up due home financing options that could get almost anyone into a home. Basically, the current recession began when bank companies and loaning companies lend money to consumers. Consumers didn’t realize that they would have to pay double the money they borrowed because the interest rate was extraordinary. Once this effect was in-play another cycle of symptoms occurred. House value dropped, jobs crashed, businesses went in debt, and mortgage companies were out of business.

3)      There were two presidents at the time that presented U.S., Herbert Hoover, and Franklin Delano Roosevelt. Hoover felt that the government shouldn’t help which is quite ridiculous. He believed that private charities such as The Red Cross and the Salvation Army. Government’s tried to end the recession, help the poor, labor unions became stronger.

4)      Technology, legal rights and freedom, internet was still weak at the time.

5)      It affected United States GDP greatly. GDP means total spending of the country. So obviously, during the depression GDP was very low due to majority of the consumers being very poor. Consumers saving up money constantly and spending very little on necessities, of course the GDP of United States will go down.

6)      I think the Great Depression made more of an impact on the world because, it’s just catastrophic. Especially, if it was during around the 90’s. The Current Recession occurred around the 21^st century which it isn’t such a big deal because majority of the countries have technology, more population, more intellectual people, and wealthier people. But definitely, the Great depression was worse; governments had no idea what to do during the time of depression.