It is common that people see both the Great Depression and the Great Recession caused some serious, negative impacts on the American economy and American lives. However, the Great Depression brought out the most terrible economic crisis, that spread rapidly, compared to the Great Recession. The two economic crises were similar in the fact that both caused an enormous downfall in the American Growth Domestic Product (GDP). The graphs of both economic crises would show a dramatic negative slope representing the effects of the economic crises and how drastic the crash represent the people or national economy not making money overall, or barely to sustain the economy. There is however more of a difference between the two economic crises like the hardship of growing the GDP and also the length of how far it went until it stopped falling and long it took for the crash to stop and to rise to back to the last biggest GDP. We can obviously see the Great Depression’s effect on the GDP is way more fatal than the Great recession's in many ways, but the hardship of the Great Depression took a bigger downfall/hit and for a longer time to bring the economy back to normal, which took almost ten years to recover from, where Great Recession only took four years to recover from.
More notes/statistics on both economic crisis:
Great Recession:
- GDP rose at a 2.1 percent annual rate in the third quarter of 2015 and was 2.2 percent higher than in the same quarter a year ago.
- This output gap, which is manifested in excess unemployment and idle productive capacity among businesses, is the legacy of the Great Recession.
Great Depression:
- measured by gross domestic product, sharply declined following the crash on Wall Street—from $103.6 billion in 1929 to $66 billion in 1934.
- The economic recovery of 1933-1937, among the most dramatic in US history, saw double-digit annual gains, although a tax increase and cutback in government spending in 1937 threw the economy back into recession
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