Analyze The Causes Of The Great Depression

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The great depression, which started in 1929, was a time of terrible poverty, rising unemployment, and dropping production. The main cause of the great depression was the loss of confidence in banks and businesses by the American public. Many banks and businesses failed during the depression because they lost so much money on the stock market or on loans, and this caused people to lose faith in them. This loss of confidence affected the nation in many ways including, economically, psychologically, and politically. The great depression started in 1929 and lasted through 1939. The great depression was a time of intense poverty throughout the United States, and much of the world. In 1929, the stock market crashed. This caused many people to panic, and a lot of people lost large sums of money. Businesses and banks failed while unemployment soared. Another problem was…show more content…
The recession started in 2008 by the stock market crashing like the great depression started. People who had money in stocks again lost large sums of money. Both the great depression and the recession of 2008 had banks that collapsed, and businesses that closed (State). This is a sign in both situations that the economy is not headed in a good direction. The Similarity is that people lost confidence in banking because many banks had to close in the depression, and some had to close because of the recession in 2008 as well. In both situation you could see the terrible conditions of the economy because of rising unemployment rates. In 2008, the unemployment rate had reached 8.1 percent, but during the time of the depression it reached 25 percent (State). Both had bad unemployment rates, but you can also see that the recent recession was not nearly as severe as the depression. Government put policies and programs into place to prevent a depression from happening so severely again which is evident in the unemployment
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