The Great Depression of the 20th century and the Great...

The Great Depression of the 20th century and the Great Recession of the 21st century were both important economic crises in U.S. history. The Great Depression began in 1929, during the presidencies of Herbert Hoover and Franklin Roosevelt. The Great Recession of 2008 took place at the end of President George W. Bush’s presidency and at the beginning of President Obama’s presidency. The Great Depression was a long-term decline in economic activity, and the Great Recession was a business contraction, also causing a slowdown in economy. In response to the depression, Pres. Roosevelt enforced the New Deal program. In his first term as president, Pres. Obama introduced the Stimulus Plan to help the recession. The Great Depression and the†¦show more content†¦Oversupply of dollars to buy crude oil led to dollar devaluation. The increase in the money supply by the Federal Reserve was about 125%. During this period, the economy declined about 4%. Both President Obama a nd Roosevelt came into power when the American economy was in downturn. They both introduced plans to help boost the economy. Both, Obama’s Stimulus Plan and Roosevelt’s New Deal, first aimed to decrease the unemployment rate. They created new jobs through govt. spending. In both plans they tried to revive the stock market and restore confidence in investors. They also increased federal spending to revive banks. Despite these similarities, there were many differences between the programs. Under Pres. Roosevelt the CCC and WPA gave workers moderate wages, while in the Stimulus Plan workers were paid money. The stimulus was focused on helping American keep their homes by refinancing mortgages. FDR’s New Deal aimed to feed the starving Americans. During the depression, the federal govt. was the first employer, while under the stimulus plan; money was given through privately owned companies. FDR was less efficient with his plan; because there was less money supplied by the govt. Obama did not repeat this mistake and allotted billions of dollars to end the recession. The Great Depression and Great Recession adversely affected the American economy. The two crises were both results of a chain of events, but the 1930s recess wasShow MoreRelatedThe Great Depression Of The 1930 S1476 Words   |  6 Pagesthe great depression of the 1930’s and the great recession in the United State of America. First, I’ll make a general overview of each of these two different periods and then focus on certain specific aspects during these different times. This will include the causes to the economic recessions witnessed, impacts of the economic recessions and the solutions that were introduced. When talking about any topic regarding American history, it would be hard not to mention the 1930’s great depression. 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