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


2/39

Introduction


3/39

•“History repeats itself” as

the saying goes.


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.


5/39

Great Depression

• "onsidered as the longest, !ost widespread

and deepest depression ever e#perienced in the

$%th century.


6/39

Great Recession

• so!eti!es referred to as the late&$%%%s

recession

• considered as the !ar'ed of global econo!ic

decline.


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.


8/39

• 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.


9/39

Background of t! Stud"

• Great Depression

• Great Recession


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.


11/39

• -. hat are the si!ilarities and differences of

the Great Depression and the Great Recession

in ter!s of/

▫ -.- "ause0

▫ -.$ 1ffect0


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


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.


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


15/39

• *his study gives its readers not 7ust the


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.


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.


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.


19/39

T!or!t(ca% *ra#!+ork


20/39

C%a))(ca% !cono#(c)


21/39

Keynesian Economics


22/39


23/39

Methodology


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.


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.


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.


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


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.


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


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@.


31/39

Pr!)!ntat(on, Ana%")() andInt!r&r!tat(on of Data


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.


33/39

Cau)!) of R!c!))(on• Irrational exuberance in the housing market

• High Interest ates


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.


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.


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.


37/39

'!ngt of A/!rag! Un!#&%o"#!nt


38/39

CONC!"ION


39/39

Recommendations

• A'AR()(**

• A+AT-

• R(*+)*"/"0"T-

• *1)! +1/0"2 +0"2-

the great depression and recession in america

Documents