Barack Obama stated in a speech on May 14th concerning the housing crisis that, "There are some similarities, though, to what happened back in the late 20s and early 30s and what's been happening now, and the biggest similarity is how we've been dealing with Wall Street and what's happening in the financial markets." Today he stated that after the Lehman Brothers crisis and the buyout of Merrill Lynch by Bank of America that we are in "the most serious financial crisis since the Great Depression." On the other hand, John McCain is much more cautious stating today that "There's been tremendous turmoil in our financial markets and Wall Street and ... people are frightened by these events. [However] the fundamentals of our economy are strong. But these are very, very difficult times."
How did the Great Depression start? It began with the stock market crash of 1929 followed by the failure of over 3,000 banks in the 1930s. Americans stopped purchasing across the board. Further, America's policy with Europe and the drought conditions that existed in middle America just added to the events of the day. Understanding this, the answer to whether we are entering another Great Depression lies in part with how Americans react to the latest news. If individuals fear for the future, they might not purchase as much. Obviously with less being purchased, there will be less to manufacture. This will result in a loss of jobs. If consumer confidence stays high then we might experience a serious recession but hopefully we will be able to avoid the worst of the Great Depression.
Do you believethat we are headed for another "Great Depression?" Why or Why not? How would your life change?
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20 comments:
I do believe that we are headed for another "Great Depression" because America has not yet fixed our problem on Wall Street.We dont know if congress would have enough money to repair Americas financial problem.People are soon goin to get scared knowing that they might loose there jobs because of this.My life would change alot because this would mean that people would be poor and we would not b able to afford the luxuries that we once had before.America just needs to devise a plan to improve our economy.
Jenneth Phillip
Yes I certainly belive that were going to be in another a "Great Depression". Why? because the same exact things that happend many years ago is happening now the same exact way.Banks went out of buissnes back then and the same thing is happening today. Congress might not have the needed amount of money to help with the financial problem. It would affect not oly me but the whole world. Many more will loose their jobs. There wont be any money to support their families. No food no job no more money wasted on good clothes sneakers and stuff like that.Congress has to approve the help that is needed or somebody has to come up with some other way to help get out of this nightmare before things get worst and theres no way back.
Erika German
I do believe that we are heading back to a Great Depression. Problems that were occuring back in the late 20's and early 30's believe it or not is occuring or yet to come today. With all these serious financial crisis today we could be headed for a part 2 of the Great Depression. We are currently living in a very difficult time, and people including myself are frightened. Like what is going to become of this world? Are we going to start paying $5.00 dollars for gas? This will definitely change my life and many others because majority will stay with no jobs and we would not afford any thing for ourselves. This is extremely scary, America needs to vote for the greatest president that can improve our economy.
*Clariza Gutierrez*
As we know the stock markets on Wall street arent doing that well. The government is trying to bail out some of these establishments however, if the markets keep dropping down, would that money just be a waste. There is always a way out of this crisis and it absolutely doesnt have to result in a Great Depression. Loss of jobs, and inflation effects us greatly. Food is much pricier than before and the rise of taxes will definitely effect us. We once had a great depression and we bailed our self out then and if it happens we could definitely do it again. I certainly think that we are heading down that road of another Great Depression, and its up to the next president to help improve the economy.
hmm thats a really interesting question? i think ill ponder on that. but seriously i think it can go either way right now. yes the stocks are going down but they can go right back up. major companies are falling , but only to make way for new and better companies. manufacturers are pissing and moaning about people not buying thier products. so make a new product or improve what you already produced. come on people we got ourselves into this "depression". we can damn sure get ourselves out of it. we got ourselves into worse things than this and got ourselves out.please!! this is just an excuse to panic and act crazy.
CHRISTINA GORDON AKA KURBY
oh yeah and as you see the only thing it change in my life is propably make it more complicated and irritating because now we have to watch what we buy and do. we already have to do that because of stinking global warming. can we ever get a break??
- a continuation to my other comment-CHRISTINA GORDON AKA KURBY
i think we are headed for another Great Depression because when you think about it, everything that happened back then is reoccurring all over again. People in America are going to slowly start loosing their jobs and people will stop purchasing things because of the lack of money and if we don't do anything about it another great depression is where we are heading. it will definitely change my life because then i would have to be more cautious of the way i spend my money and Life would be much more difficult having to pay bills and so on...
Raysa Rojas*
MY OPINION ON THIS SITUATION IS THAT THE GREAT DEPRESSION WILL BE REPEATED BUT NOT AS STRONG AS IT HAPPEND IN THE 1920'S-30'S. JOBS ARE MORE DIFFICULT TO GET NOW AND SOME JOBS ARE RUNNING SLOW. THIS WILL AFFECT MY LIFE BECAUSE WE WILL HAVE TO WORRIE MORE AND WATCH HOW WE SPEND .
Jessica Rodriguez
I think that we are heading for another Great Depression because america is having to much financial problems. Everything is going up which makes it hard for some people to afford. I think this will hurt my life but as well as others. This will affect people lives because they will find it hard to survive. Jobs will become less and less. Families wont have money to support their children. America needs to come up with a plan that will help the economy and make this country a better and easier place to live in.
-Yaniry Ortiz
I do not believe that we are headed for another great depression. I believe this because as stated in the document, the citizens of America have to stop buying merchandise in order for the depression to start. America's citizens spend money all day everyday. If you go to the shopping mall they are filled everyday no matter what. People shop all day spending money by the minute. If we did enter a Great depression this would affect me because my family might suffer alot because we are not the wealthiest people and we do spend money alot so we will be caught off guard.
DELORES QUINONES
I HONESTLY DO THINK DAT WE MIGHT HAVE ANOTHER GREAT DEPRESSION.
LOOK AT THE STUFF WIT WALL STREET. HOW DO WE KNO IF CONGRESS IS GOING TO HAVE ENOUGH MONEY TO FIX THAT PROBLEM. ITS A LOT GOING ON WITH DAT.
FRANCESCA BARREAU
yeah i think we are headed for another depression because too much things been happening lately....American always clai they dont have any money but then again they would have trillions of dollars to spend on other dumb sh*t you feel me so they need to come up with a plan real quick cause i see american going down!!
Yes. i feel that we are heading for another great depression do to the fact the problem that happened on wall street having people go crazy we are not to sure weather or not if congress haves enough money to support the finanical problem of america it possible that some or most people may lose there job.The congress need to come up with an idea that can help out the world as soon as possible because if not lots of people will become homeless and have no money to support their families
As far as how things are running now I strongly believe that we are heading towards another great depression. With this financial crisis going on it makes the saying "Money is what makes the world go 'round" really true. Without money everything crashes and goes bankrupt. Sooner or later the unemployment level would rise and by the time I graduate college with my career I'll have less job opportunities. And I'll definitely won't be looking at cars because the insurance and gasoline would be insane. Hopefully everything turns out good and I won't be in another 1929 era.
- Meh-Low :)
I believe that we are heading towards another Great Depression because things that happened during the late 1920s and early 1930s is happening now. During that time we have been having issues with Wall Street and financial markets. According to Obama, this is one of our biggest financial issues since the Great Depression. If we do have a Great Depression it will affect many of us. Less will be purchased, therefore, they will hardly be anyone buying things. This will eventually lead to people losing their jobs. Many Americans will end up poor and not being able afford many things. I hope we dont end up in another Great Depression because many of us wouldnt know how to handle such a situation.
Charlene Vega
I believe that we are getting our selves into another depression. Wall Street crashed. Our economic system is in danger of another depression. If there was another depression my life will change completely. For the simple fact that I will be living in the streets with hunger and most likey never persue my dreams. Also may be my family will become more closer.
gina.
yes i do think theiris going 2 be a nother great depression. people are scared sow their gonna start to take their money off the banks. everythings going up milk gas. People are soon goin to get scared knowing that they might loose there jobs because of this. I certainly think that we are heading down that road of another Great Depression, and its up to the next president to help improve the economy.
In a way i believe that we might lead to another great depression which is a sad thing to think about. If anything i would like to know were would they get the money from to help with our finicial problems??
i think they would raise the tax to get money which is wrong cause i know there are people who are having problems now with taxes and this would bring stress to so many people. And i know soon people would start panicing and feel like their going to loose their jobs. I know my life would change but i wouldnt know how cause its something i wouldnt want to think about. America should have a plan from the experience they had before.
-Jennifer silver
The War in Iraq and the war in Iran are two major issues. Believe it or not we are in two pointless war making little to no progress. Obama will have to compromise with other nation leaders to settle things. But first thing first, our troops need to be sent home. If we werent in two wars, maybe our stock markets would be upp and maybe we would have more money to be donated to things that our country really needs. A lot of money has been wasted on the war. Our country should not be in two wars at this point because our economy is down and it seems as if our country is in turmoil.
~Desteny Bodrick~
The way our economy is going right now, yes we are headed for another depression.Another GREAT depression however...no. If we could fix things while still in a ressesion that would be awesome..ut not realistic. Things have to get worse before they can get better.We will probaly be in a semi serious state for (at leas I think) a year at most. YES a depression would affect me I am an american!!
*Adina*
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