By Lauren Cappelli
In today’s society there are many fears that we are headed towards another Great Depression. However, when you look deep into how bad the Great Depression really was, and compare it to today, you will be able to find comfort in the fact that it will not be nearly as bad.
Unemployment is a big cause of concern for many people. Economists believe that unemployment will peak between 8 and 9% during this crisis. This percentage may seem really high but it is nowhere near the 25% that was reached during the Great Depression.
Bank failures have also been a problem in today’s crisis. A handful of banks, such as Wachovia and Merrill Lynch, have gone under but compared to the amount of bank closings during the depression it doesn’t compare. Over 1,000 banks during the Great Depression closed for good. This was nearly 40% of all banks. Today there have been 19 bank failures. The FDIC has been able to find buyers for these distressed banks which cushions the fall.
Another striking statistic that depicts the difference between the Great Depression and today is the Gross National Product. During the Depression, the GNP dropped by 31% as opposed to the close of the 3rd quarter in 2008 where it only fell by .03%
Although economic times are tough in today’s society we can find a little comfort in the fact that America has seen worse. The Great Depression was a very dark period for the United States, but hopefully it can teach us how to not make the same mistakes today.
Unemployment is a big cause of concern for many people. Economists believe that unemployment will peak between 8 and 9% during this crisis. This percentage may seem really high but it is nowhere near the 25% that was reached during the Great Depression.
Bank failures have also been a problem in today’s crisis. A handful of banks, such as Wachovia and Merrill Lynch, have gone under but compared to the amount of bank closings during the depression it doesn’t compare. Over 1,000 banks during the Great Depression closed for good. This was nearly 40% of all banks. Today there have been 19 bank failures. The FDIC has been able to find buyers for these distressed banks which cushions the fall.
Another striking statistic that depicts the difference between the Great Depression and today is the Gross National Product. During the Depression, the GNP dropped by 31% as opposed to the close of the 3rd quarter in 2008 where it only fell by .03%
Although economic times are tough in today’s society we can find a little comfort in the fact that America has seen worse. The Great Depression was a very dark period for the United States, but hopefully it can teach us how to not make the same mistakes today.
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