ECON3353 UTRGV Comparing The Great Recession To The Great Depression Here are the specific paper formatting rules:Paper Formatting Guidelines 12-point Time

ECON3353 UTRGV Comparing The Great Recession To The Great Depression Here are the specific paper formatting rules:Paper Formatting Guidelines 12-point Times New Roman font Double-spaced lines 1-inch margins Cover sheet with research paper title and abstract, but no author-identifying content APA formatting Minimum Page Length: 10 pages (not including Title Page)PDF Format (saved as the title of the research project) Running head: ECONOMIC CRISIS
Lee 1
Comparing the Great Recession to the Great Depression
Student’s Name: Lee
Professor’s Name: XXX
Course: Econ 3353 – Money and Banking
Date: 2/18/2019
ECONOMIC CRISIS
Du 2
Comparing the Great Recession to the Great Depression
The great recession of 2007 through 2009 shadows the great depression of the 1930s in
various aspects. While it is important to determine the primary causes of the two periods of
economic crisis, many researchers have discovered the commonalities in the two crises while
differing in some aspects. This paper compares the great recession to the great depression with
the lens of determining the factors that lead to economic downfall. As established in this
proposal, government intervention in the commercial business may influence or deter the
financial crisis. As such, the paper employs a proper methodology in this research to permit
informed conclusions on the commonalities of the two economic downfalls.
Research question
Although the government policies and the private sector play an important role in the
development of an economic crisis, are there similarities between the great depression of the
1930s and the great recession of 2007-2009? Did government intrusions help in dealing with the
crisis in the two events? It is notable that any influence by the federal government on the
countries business economy would impact on the private institutions and business people
(L’Huillier & Yoo, 2017).
Methodology
It is significant to note that because of the height and weight of the two economic crises
in the United States, many researchers have conducted different surveys to establish the probable
causes, implications and future mitigation strategies for a similar event. This research proposal
examines the similarities between the two economic crisis events by thoroughly reviewing the
existing literature on the circumstances.
ECONOMIC CRISIS
Du 3
Analysis
A recent study by Ohanian (2017) shows that great recession and the great depression has
many similarities. The research finds that the federal government intrusion in the business
activities laid down the foundation of the economic crisis in both events (Duca, 2017). In the
1920s, the government lowered the interest rates generating an economic boom where various
investors determined to invest in the country (Temin, 2010). As such, many people borrowed
from the banks and spent in the capital market and the hike in the interest rates towards the end
of the 1920s prompted the crush of the wall street journal and many borrowers defaulted mainly
affecting the banks and other financial institutions (Koch, Richardson & Van Horn, 2016).
Similarly, the push for mortgages through government policies and low-interest rates
provoked many individuals where some financial institutions demanded no securities for the
mortgages (Temin, 2010). Just like the new deal of President Roosevelt, President Obama
decided to increase government spending with the aim to create more jobs for the people that
further would increase spending among the people and thus the growth in the Gross Domestic
Product (Barranco & Sudrià, 2012). In both crises, the aspect of cutting the federal budget was
critical and played some part in endeavors to end the crisis.
Conclusion
As demonstrated above, the increased interest rates that followed an economic boom in
both events, lack of caution among the financial institutions, increased frequency of loan
defaulters and unemployment were common factors in both the crises.
ECONOMIC CRISIS
Du 4
References
Barranco, J. A. P., & Sudrià, C. (2012). ‘The Great Depression’ versus ‘The Great Recession.’
Financial crashes and industrial slumps. Revista de Historia Industrial, (48), 23-48.
Duca, J. V. (2017). The Great Depression versus the Great Recession in the US: How fiscal,
monetary, and financial policies compare. Journal of Economic Dynamics and Control,
81, 50-64.
Koch, C., Richardson, G., & Van Horn, P. (2016). Bank leverage and regulatory regimes:
Evidence from the great depression and great recession. American Economic Review,
106(5), 538-42.
L’Huillier, J. P., & Yoo, D. (2017). Bad news in the Great Depression, the Great Recession, and
other US recessions: A comparative study. Journal of Economic Dynamics and Control,
81, 79-98.
Ohanian, L. E. (2017). The Great Recession in the Shadow of the Great Depression: A Review
Essay on Hall of Mirrors: The Great Depression, the Great Recession, and the Uses and
Misuses of History, by Barry Eichengreen. Journal of Economic Literature, 55(4), 15831601.
Temin, P. (2010). The great recession & the great depression. Daedalus, 139(4), 115-124.

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