Recession In The 1930's

In the beginning, the only event that popped into anyone’s mind when they heard the word recession was in the 1930’s. During the 1920’s a stock market crash occurred, however, many believe that the recession began way before leading up to the crash as a whole. This recession went on through the 1930’s, ending around 1939, depending on who you ask. It took a significant amount of time to recover, and while doing so, prepared for another recession in future if it happened. Over the years, the economy has good and bad days, however, the United States have become aware of the housing market, unemployment, and bad loans affecting the economy drastically during 2007-2009. The recession became noticeable in December of 2007, but began much earlier
The decrease in the housing market was strongly affected and the results show today how they’re still recovering from the past seven years of negativity. With the negative impact on the housing market, a negative effect took a toll on business investments as well. Businesses were not reaching the goals that were expected of them because of the lack of consumer spending happening during this period of time. In December of 2007, the unemployment rate was 5.0% and before that it was even lower, according to the Bureau of Labor Statistics. In June of 2009, the unemployment rate was recorded at 9.5% and soon after, it reached 10%. It has not been that high since September 1982 and June 1983 it reached 10.8%.
The graph above portrays the great recession unemployment and how many people in millions became unemployed. Businesses lost many employees because they could not afford to pay any of them. It’s not that they did not want to work, they wanted to just as much as anyone else. During this period of time, it was difficult to maintain a stable business with very little spending happening around the
The financial crisis was for banks to slowdown lending and with that market prices would decrease, however the public is forced to sell off those assets in order to repay their loans. Once house prices dropped and the bubble burst, banks slowed lending even more once the economy clearly shows a recession had occurred. The housing market, unemployment, and bank loans were all contributing factors to the great recession in 2008. With these three causes, the resolution is still in recovery. The economy is recovering everyday as the year 2016 goes on. Today, the economy is becoming stronger, advanced, and people are understanding how to handle situations to avoid a recession and/or depression. The causes and effects remain and all anyone can do is learn from the past and understand how it happened and how it can be stopped in the future. The great recession of 2007-2009 will always be known as a time to learn