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Our current recession has been acclaimed as the worst economic crisis since the Great Depression. Continuously published statistics to show how this economic crisis worsens. However, as this recent economic collapse comparable to the Great Depression?

It is difficult to identify a single answer to the cause of economic crisis, as there are factors that have been involved. Disaster in a section of the economy could trigger a domino effect at all times. Several factors combined to cause the great depression. In the 1920s, the business was growing and people are eager to get rich quickly. However, the postwar boom encouraged industries to make products more than they could sell, and the First World War left many countries recovering from heavy debts and taxes.

A similar factor can be seen to contribute to the Great Depression and our current economic crisis is that credit institutions. Before the crisis, the credit was extremely easy to obtain and many people have built their debts. People have invested in the stock market with surplus or by borrowing, and thus transformed into an operation of the game People who bought shares at high prices, hoping to sell at prices even higher . Share prices have been rapidly beyond their real value. The ball kept growing economy. When it burst, the holders of shares in a hurry to sell and the stock market collapsed.

People invest in real estate has pushed the price, and in turn, house prices became overinflated. As a result, large financial institutions like Fannie Mae and Citigroup have lost incredible amounts of money because of these practices. When this burst of real estate in the globe, each section of the economy has been badly beaten since.

When the stock market crash in 1929, the gross domestic product fell from $ 87 billion $ 41 billion four years later. The number of unemployed in 1930 numbered 7000000. Recent results of the recent economic crisis, according to a report of more than 5 million unemployed. The unemployment rate is now 8.1 percent, according to a report published March 6, 2009. This is the highest unemployment rate since 1983. It 'was in January 2009, employers cut nearly 600,000 jobs, the biggest loss since 1974.
 
Effects

The presidential election has not been shown to be particularly affected by the economic crisis. In 1932, President Herbert Hoover ran for reelection against Franklin D. Roosevelt. Roosevelt overwhelmingly won the presidency, most Americans blamed Hoover for the Great Depression. The economic crisis and the response of each candidate, has become the defining theme of the contest between Barack Obama and John McCain in 2008. It is clear that John McCain did not learn from history as he stuck with the conventional wisdom is that Republican economic fundamentals were strong and the economy is fixed. Hard economic falls also affected and undermined political stability. The Depression era saw tremendous political upheaval. Dennis Blair, Obama's intelligence chief, said recently that the current economic crisis may pose the greatest threat to global security.  

Conclusion

There is much debate about whether the country is heading into another Great Depression, as we saw in 1930. Although today's global economic crisis has not yet reached a staggering number of the Great Depression, most experts predict that the recession will deepen before it gets better, as companies have more layoffs in the coming months.