The Similarities and Differences between the Great Depression and Current Economic Conditions Allison Spencer
July 27, 2010
The current economic condition has often been compared to that of the Great Depression of the 30’s. Both began with a dramatic crash in the stock market. Each was exasperated by increased unemployment, decreased industrial production and construction. With these changes came a rise in home foreclosures and repossessions. Additionally, both eras’s had environmental issues which affected conditions within the country. With all of the similarities one can’t help comparing the two. However, the truth lies in the actual statistics. In President Obama’s inaugural speech (2008) he speaks about presidents making this transition in good times and bad. He wants Americans to understand that it takes hard work and unity to overcome the challenges that we face as a country. He also recalls the hardships of the past and explains that it took many years to overcome the economic downfall of those times. This shows that he has looked at past situations for remedies to the current situation.
The stock market stock market crashes seem to be one of the first indicators that there was a problem. Coincidentally both crashes started in October. After a 400% increase, between 1926 and 1929, the market began a decline that would last for years to come. Between October 24, 1929 and October 29, 1929 stock the market dropped 34%. This decline continued until July 1932. At that point it had gone from a high of 381 points down to 41. This was almost a 90% decline. It would be 22 years before the market would reach that high point again. Between October 1, 2008 and October 10, 2008 the stock market seemed to repeat history. In those ten day the stock market dropped 22.11%. On October 24, 2008 the Dow fell to 8,378.5 points which was the lowest point since April 23, 2003. Only time will tell how the current situation will...