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The Great Depression and the Recession of 2008

            It is a common misnomer that people interchangeably use the words recession and depression. According to Investopedia, a recession is defined as a significant deterioration in activities across the economy. This decline in economic activity should last longer than six months. The indicator of a recession is a two quarter consecutive period of declined Gross Domestic product. On the other hand, a depression is defined as a prolonged recession that lasts two or more years. A depression is characterized by economic factors such as increased unemployment, diminished output, and a marked volatility in currency values. In a depression, consumer confidence and investment decrease causing the economy to shut down[inv12]. This paper intends to explore the differences between the great depression of 1929 and the financial crisis of 2008. The paper identifies the causes of the Great Depression of 1929 and the financial crisis of 2008. It further looks at the government agencies relating to human resource that arose from the Great Depression. .
             The Great Depression of 1929.
             The great depression is documented to have been one of the worst economic depressions in the history of the United States. It was a financial decay that started in 1929 and lasted well into the 1940's. It occurred in North America and Europe but affected many countries around the world as well [Dav09].
             Causes of the Great depression.
             The cause of the great depression is attributed to several factors. The stock market crash of 1929 is referred to as spark that ignited the Great Depression. The stock market crash started on October 24th, 1929 with a twenty one percent decline from its previous high. The decline caused a selling panic by investor so that they could salvage some of their investment. This idea did not help the situation because virtually no one was buying. Two months after the decline started, investors had lost over forty billion dollars and the crash was now in free fall.

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