Discussion 3a - Unemployment was high and the value of the...

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Discussion 3a After reviewing the Great Depression of the 1930's can you draw any parallels between that depression  and the economy we face today? What is different? What is the same?             ‘Those who cannot remember the past are condemned to repeat it.’ - George Santayana The Great Depression was the greatest slump of the economy in the history of the world. Today's financial crisis is hardly that grim, though it does share some similarities with the economic collapse of the 1930’s. Both the Depression and our weak economy today were preceded by a housing boom, a long period of cheap credit and a falling stock market.
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Unformatted text preview: Unemployment was high and the value of the dollar was low. The production of goods dropped and industries were struggling. Small businesses close and people who lived on credit must pay cash. Without cash or credit people's spending stops and the demand for goods drops. When people stop spending the companies lay off people because they don’t need the production which increases unemployment. It is a vicious circle. There are similarities between the great depression and what the economy is in right now, but if people don’t panic like they did when the stock market crashed, we shouldn’t reach that point in our history again....
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