Great Depression vs Current Depression

Great Depression Vs Current Recession
Questions:
1. How did the Great Depression start?
The Great Depression started in the US when the stock prices fell on September 4th, 1929 and contributed to the crash on October 29th, 1929 also known as Black Tuesday.

2. How did the current recession start?
The recession started because consumer spending slowed down which resulted in a decrease in GDP, this is because our economy is largely driven by consumerism. The reason consumer spending slowed was because banks were lending money to people regardless of their credits and interests rates were very high.  Also demand in housing properties increased because of high liquidity and low interest rates on mortgage loans. Prices increased and house owner swanted refinance at lower interest rates.

3. How did the government take part following the event? Were /are they successful attempts?
The Gov't took part in the great depression by introducing employment programs to employ the people who lost their jobs during the depression, they increased interest rates to keep the US dollar up but there was not much they could do. In the current recession the US Gov't gave bail-outs to several large companies like AIG, GM, Chrsysler. The Lehman Brothers weren't given bailouts and became bankrupt

4. What factors are present now that were not present during the Great Depression? (ie. Banking, online resources, etc.)
Some factors that are present now that were not during the depression are debit cards and online banking which has made banking and withdrawing your money a lot easier through ATMs, etc. There are also credit cards which lets you use money with high rates, however this can be dangerous because people may not be able to pay back the money they owe.

5. How did these two affect United States’ GDP?
In the Great Depression and the current recession the US GDP dropped dramatically and in the 1920s the US GDP peaked around 1$ trillion dollars. During the depression the dollar decreased and people lost their jobs. Because of this the US lost over $400 billion and the same situation although less severe happened during the recession.

6. Reflection: In your own words, tell me which one has made more of an impact on the world.
The Great Depression made a greater impact on the world because it had never been seen before and it taught people how to respond to a depression. As time passed the world learned how to deal with it and prepare themselves incase it happened again. I believe that we are more educated and knowledgeable now then ever before.