The recent “Great Recession” has often been compared to the Great Depression. However, the two events were caused by different factors. Many consumers borrowing irresponsibly created the Great Depression; while too many banks lending irresponsibly, created the Great Recession.
During the Great Depression and the Great Recession, both President Roosevelt and President Obama used Wall Street Bankers’ as their scapegoat. The biggest decline in Dow Jones industrial average was at -89.2% in the depression and 53.8% during the recession.
Throughout the Great Depression there were 50% of bank failures while only .6% of bank failures occurred in the Great Recession. Obtaining and keeping a job has been proven difficult in both economic downfalls, with a 25% unemployment rate in the Depression and 8.5% in the recession.
While there are a lot of comparisons between the Great Depression and the Great Recession, how close are we are to repeating one of America’s infamous failures? Take a look at this infographic presented by paydayloan.co.uk to learn more.