What are three reasons why our country is not in a depression?
1) The unemployment rate during the great depression was the highest our country has ever seen. During the Great Depression the unemployment rate was at 25%. Poverty was rampant everywhere. People lacked the basic necessities such as food, clothing and shelter. It was very difficult to find a job as the economy was stagnant. It was not until World War II that the economy started moving again.
2) Unemployment benefits did not exist during the Great Depression. During the 1930s unemployment benefits were non existent. People that lost their jobs went without any source of income. Jobs were very scarce and if you were unemployed chances are you went hungry. These days, the government has unemployment insurance. Unemployment insurance giver those who have been laid off from a job an income for at least 6 months. These benefits have recently been extended to a year because of the severity of the current economic crisis. Unemployment does not give you much income, however, it is much better than no income.
3) Government intervention is another reason our country will avoid a depression as severe as that of the 1930s. Our country is divided by the amount of money that the government is spending in order to fix the economy. The truth is that without intervention our country would be in worse shape than it already is.
During the Great Depression there was little to nothing to done to boost the economy. Banks were allowed to fail and widespread panic swept through the financial markets. The failure of Lehman Brothers caused a similar cataclysmic effect that sent shock waves through the economy. The government does not want to cause more damage in the economy by allowing such large institutions to fail.
There is no doubt that our country is in a severe economic recession. However, we are not anywhere near the destitution that was felt during the 1930s. Unemployment is at an all time high, however, it is not so severe that one in four Americans is without a job. Furthermore, during the Great Depression, public programs like food stamps or Medicaid did not exist. Our economy is also more diversified in the sense that innovation has transformed this country from the industrial age to the era of technology. Technology has broadened are our abilities to do business as well.
The United States has always survived one way or another. The Civil War once divided our country, however, it did not destroy it. We have survived World War I and World War II and the Great Depression. We even survived the worst attack on our country ever, September 11, 2001. I am quite confident that the American spirit will pull us through the worst economic recession in decades. Not only will we survive, we will also become a stronger nation because of it.
1) The unemployment rate during the great depression was the highest our country has ever seen. During the Great Depression the unemployment rate was at 25%. Poverty was rampant everywhere. People lacked the basic necessities such as food, clothing and shelter. It was very difficult to find a job as the economy was stagnant. It was not until World War II that the economy started moving again.
2) Unemployment benefits did not exist during the Great Depression. During the 1930s unemployment benefits were non existent. People that lost their jobs went without any source of income. Jobs were very scarce and if you were unemployed chances are you went hungry. These days, the government has unemployment insurance. Unemployment insurance giver those who have been laid off from a job an income for at least 6 months. These benefits have recently been extended to a year because of the severity of the current economic crisis. Unemployment does not give you much income, however, it is much better than no income.
3) Government intervention is another reason our country will avoid a depression as severe as that of the 1930s. Our country is divided by the amount of money that the government is spending in order to fix the economy. The truth is that without intervention our country would be in worse shape than it already is.
During the Great Depression there was little to nothing to done to boost the economy. Banks were allowed to fail and widespread panic swept through the financial markets. The failure of Lehman Brothers caused a similar cataclysmic effect that sent shock waves through the economy. The government does not want to cause more damage in the economy by allowing such large institutions to fail.
There is no doubt that our country is in a severe economic recession. However, we are not anywhere near the destitution that was felt during the 1930s. Unemployment is at an all time high, however, it is not so severe that one in four Americans is without a job. Furthermore, during the Great Depression, public programs like food stamps or Medicaid did not exist. Our economy is also more diversified in the sense that innovation has transformed this country from the industrial age to the era of technology. Technology has broadened are our abilities to do business as well.
The United States has always survived one way or another. The Civil War once divided our country, however, it did not destroy it. We have survived World War I and World War II and the Great Depression. We even survived the worst attack on our country ever, September 11, 2001. I am quite confident that the American spirit will pull us through the worst economic recession in decades. Not only will we survive, we will also become a stronger nation because of it.
Labels: economic recesion, the great depression
Credit Card / Financial news blog post by Todd Holliday at 7:43 PM 