The American Changing Economic Philosophy during the Great Depression 1929-1939 and the Financial Crisis 2007-2010

Abstract

In 1920 the capitalist system achieved an economic boom in the United States, but in 1929 a crisis occurred which is classified as one of the most serious in history. Because the capitalists were unable to face the recession crisis, the world entered into a massive economic recession in all sectors, which affected the economies and colonies of Europe, especially those that were in favor of the capitalist system. The world also witnessed a financial crisis in 2008 known as the mortgage crisis. It was one of the worst disasters after the Great Depression of 1929. The low financial level destabilized the economic entity and led to the misuse and expansion of the high-risk mortgage, which led to a negative impact on the economic system in general. The two crises had several negative aspects, and the main elements that distinguished them from the other were their impact and severity. A comparison was made between the financial crisis and the Great Depression from the point of view of history and then the economy. This was done intentionally to answer the question: Did history repeat the same Great Depression, or was it different? The causes and consequences of each of them were also highlighted, which were reflected in the whole world after the United States of America was considered the largest economic power in the world.