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Compare the United States today to the Great Depression? What are the similarities and what are the differences?
A fundamental difference is that modern macroeconomic measures of economic performance did not begin until after the Great Depression, making direct comparison. No science would attempt to make a comparisons between two systems using different methods of measure. We are, though, forced to.
A clear measure of the Great Recession is the accumulation of consumer dept or credit since 1943. The measure is significant and does not bracket the Depression. [1] seems to me that during the great depression the malinvestment was in the capital goods market vs now the malinvestment is in all markets effected by artificial credit expansion The situation is similar. All the economic indicators are similar. But we are the grand children of the Great Depression, all of us know how to tackle with the circumstances in depression, that is the difference! In 1930's great depression there was unemployment in the economy. Markets were flooded from goods. in this Prices, consumption, income, employment, interest,wages etc falls to greater extent. The fall of income, employment, wages and interest rate are similarities. But until now there is no decrease in consumption or prices didnt fall but prices are increasing. This is the difference. There is a danger in comparing the two periods that the tremendous violence following the great depression will be expected to be repeated if socialist policies are not implemented. In fact it is not job and income security that is needed but access to skills and information to individuals more able to withstand a loss of income without losing their food supply, shelter, and other basic necessities. This means having the skills and resource access to produce these without money. People are people. Governments are the same. What is different? Most of the things are different. It's more interesting to talk about similarities.Compare the United States today to the Great Depression? What are the similarities and what are the differences?
