The Great Depression versus the Great Recession in the U.S ...
The Great Depression and Recession in America
Transcript of The Great Depression and Recession in America
-
8/9/2019 The Great Depression and Recession in America
1/39
THE GREAT DEPRESSION AND RECESSION IN AMERICA:
A COMPARATIVE STUDY
-
8/9/2019 The Great Depression and Recession in America
2/39
Introduction
-
8/9/2019 The Great Depression and Recession in America
3/39
•“History repeats itself” as
the saying goes.
-
8/9/2019 The Great Depression and Recession in America
4/39
• Although inevitable, the painful effect of the
Great Depression followed by the Great
Recession in the U. could have been avoided if
the people involved relied and considered the
past events causes and shortco!ings.
-
8/9/2019 The Great Depression and Recession in America
5/39
Great Depression
• "onsidered as the longest, !ost widespread
and deepest depression ever e#perienced in the
$%th century.
-
8/9/2019 The Great Depression and Recession in America
6/39
Great Recession
• so!eti!es referred to as the late&$%%%s
recession
• considered as the !ar'ed of global econo!ic
decline.
-
8/9/2019 The Great Depression and Recession in America
7/39
• both !o!entous enough to earn the word
(great( as a !odifier.
• )oth are the fallout of the e#act sa!e econo!ic
pheno!enon and are only different in a few
respects.
-
8/9/2019 The Great Depression and Recession in America
8/39
• Ai!s to solve the proble! of repetition of
econo!ic !eltdown
• *o try to prevent or !ini!i+e the effects of such
catastrophic events in ter!s of anticipation and
awareness.
• rovide a thorough 'nowledge about the twice
fall of one of the !ost powerful and influential
countries in the world which is A!erica.
-
8/9/2019 The Great Depression and Recession in America
9/39
Background of t! Stud"
• Great Depression
• Great Recession
-
8/9/2019 The Great Depression and Recession in America
10/39
Stat!#!nt of t! Pro$%!#
• *he !ain proble! of this paper is to
investigate the repetition of econo!ic
downturns of U. with al!ost the sa!e
cause and effect.
-
8/9/2019 The Great Depression and Recession in America
11/39
• -. hat are the si!ilarities and differences of
the Great Depression and the Great Recession
in ter!s of/
▫ -.- "ause0
▫ -.$ 1ffect0
-
8/9/2019 The Great Depression and Recession in America
12/39
$. How does depression differ fro! recession in ter!s of
econo!ic effects02. hat are the si!ilarities of people3s behavior towards
every econo!ic downturn and their lac' of prevention
to avoid it0
4. hat prevention should have been done to avoid the
Great Recession prior to Great Depressions history0
-
8/9/2019 The Great Depression and Recession in America
13/39
Sco&! and '(#(tat(on of t! Stud"
• *his study li!ited itself and only e#a!ines the
two great econo!ic downturns that the 5orth
A!erica e#perienced6 !ade huge i!pacts not
7ust to U. but also to its neighboring countries.
*hese are the Great Depression in -82%3s and
Great Recession in $%%9.
-
8/9/2019 The Great Depression and Recession in America
14/39
S(gn(f(canc! of t! Stud"
• “*he study of 1cono!ics is a practical necessity
and a nor!al obligation” : ir Henry "lay6
• Growth ;econo!ically3.
• "onvenience
-
8/9/2019 The Great Depression and Recession in America
15/39
• *his study gives its readers not 7ust the
-
8/9/2019 The Great Depression and Recession in America
16/39
H"&ot!)() or A))u#&t(on)
• 1cono!ists believe in the concept of business
cycle wherein there will co!e a ti!e that an
econo!y will face:inevitably: either recession
or depression.
-
8/9/2019 The Great Depression and Recession in America
17/39
• revention. reventing unli'ely results of an
unli'ely event.
• =earn how to “unlearn” the things or situations
that caused those econo!ic !eltdowns.
-
8/9/2019 The Great Depression and Recession in America
18/39
• The cause of both Great depression and
recession are in the actions of the banksand its federal government. And this isreally where the problems lies in, the full blow impacts of the Great Recession could
have been minimied if not prevented ifonly they were keen in the past eventsinformation and shortcomings of Great
!epression.
-
8/9/2019 The Great Depression and Recession in America
19/39
T!or!t(ca% *ra#!+ork
-
8/9/2019 The Great Depression and Recession in America
20/39
C%a))(ca% !cono#(c)
-
8/9/2019 The Great Depression and Recession in America
21/39
Keynesian Economics
-
8/9/2019 The Great Depression and Recession in America
22/39
-
8/9/2019 The Great Depression and Recession in America
23/39
Methodology
-
8/9/2019 The Great Depression and Recession in America
24/39
Historical research !ethods
• >t is the syste!atic process of collecting and
ob7ectively evaluating data related to past
occurrences to arrive at conclusions about the
causes, effects, or trends of past events that
!ay be helpful in e#plaining the present or
anticipating future events.
-
8/9/2019 The Great Depression and Recession in America
25/39
• *he heart of the historical !ethod is not the
accu!ulation of facts, but rather the interpretation of
the facts. >t applies to all fields of study because it
enco!passes their origins, growth, theories,
personalities, and crisis.
• Also, historical research is a flowing, dyna!ic account
of past events that involves an interpretation of the
events in an atte!pt to recapture the distinctions,
personalities and ideas that influenced these events.
-
8/9/2019 The Great Depression and Recession in America
26/39
Historical economy approach• tudies the econo!ies and econo!ic pheno!ena
using co!bination of historical and statistical !ethods
and applying econo!ic theory to historical situations.
• *he co!bination of econo!ics, econo!ic history and
history ?political as well as social@ !eans that you will
be euipped to view issues in the real world fro! a
variety of contrasting perspectives.
-
8/9/2019 The Great Depression and Recession in America
27/39
Quantitative research
• "t has an ob#ective, formal systematic process in which numerical data findings.
• The research processes used in the $uantitativeapproach include descriptive, correlational,$uasi%e&perimental and e&perimental research
-
8/9/2019 The Great Depression and Recession in America
28/39
• The strength of such method is that both
true e&periments and $uasi e&perimentsprovide sufficient information about therelationship between the variables underinvestigation to enable prediction and
control over future outcomes.
-
8/9/2019 The Great Depression and Recession in America
29/39
Qualitative research• describe certain aspects of a phenomenon, with
a view to e&plaining the sub#ect if study .
• The strength of the methodology employed liesin the fact that it has as holistic focus, allowingfor fle&ibility and the attainment of a deeper,
more valid understanding of the sub#ect thancould be achieved through a more rigid approach
-
8/9/2019 The Great Depression and Recession in America
30/39
• "hoosing 7ust one !ethodology narrows a
researcher3s perspective, and deprives hi! orher of the benefits of building on the strengths
inherent in a variety of research !ethodology
?Duffy, -89B@.
-
8/9/2019 The Great Depression and Recession in America
31/39
Pr!)!ntat(on, Ana%")() andInt!r&r!tat(on of Data
-
8/9/2019 The Great Depression and Recession in America
32/39
Cau)!) of D!&r!))(on• Buying on Margin
• Buying on Credit• Supply and Demand
• The Stock Market Crash
• Drought
• Monetary Forces
• Debt Deflation.
-
8/9/2019 The Great Depression and Recession in America
33/39
Cau)!) of R!c!))(on• Irrational exuberance in the housing market
• High Interest ates
-
8/9/2019 The Great Depression and Recession in America
34/39
CAUSE -)(#(%ar(t(!) and d(ff!r!nc!).
• )oth the depression of the -8$%Cs and today3s
recession was !ar'eted by a substantial stoc'!ar'et sell&off. *he stoc' !ar'et crash of -8$8
!ar'ed the beginning of the Great Depression,
whereas the collapse of =eh!an )rothers in
epte!ber $%%9 was the beginning of the Great
Recession we are currently e#periencing.
-
8/9/2019 The Great Depression and Recession in America
35/39
• )oth periods were !ar'ed by increased une!ploy!ent,
frugality, and popular unrest.
• *he scope of the econo!ic crisis, however, is radically
different.
•During the Great Depression the global !ar'et did nothave the institutionali+ed structures necessary to
under!ine the e#tent of the bust. urther!ore, the Great
Depression was characteri+ed by a severe double dip,
whereas the current econo!ic crisis has !aintained a
steady growth rate6 growth has slowed, but it has not
stopped.
-
8/9/2019 The Great Depression and Recession in America
36/39
E**ECTS -)(#(%ar(t(!) and d(ff!r!nc!).
• *he difference between the Great Depression and the
Great Recession is very clear. >n the current econo!ic
crisis there has been a period of GD loss, followed by a
period of slow growth as opposed to the !assive decline
in econo!ic output that occurred during the Great
Depression. *he GD loss during the Great Depression
was obviously significantly greater and !ore prolonged.
-
8/9/2019 The Great Depression and Recession in America
37/39
'!ngt of A/!rag! Un!#&%o"#!nt
-
8/9/2019 The Great Depression and Recession in America
38/39
CONC!"ION
-
8/9/2019 The Great Depression and Recession in America
39/39
Recommendations
• A'AR()(**
• A+AT-
• R(*+)*"/"0"T-
• *1)! +1/0"2 +0"2-