• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Applying History to the Present - comparing the recessions of the 1920s and the 2000s.

Extracts from this document...

Introduction

´╗┐Cayli Baker Instructor: Cascella IB History of the Americas 1 Oct. 2012 Applying History to the Present The statement, ?In the decades of the 1920?s and the 2000?s the economic crisis was mostly caused by unsupported optimism that spurred people to conclude that the rules of the market had fundamentally changed,? can be regarded as accurate, but it is only true to an extent. The economic successes of the roaring twenties brought about a boom in the market, prompting citizens to invest. In the 2000?s the internet and the housing market erupted, paralleling the successes of the 20?s. The economic boom in the market of both the 1920?s and the 2000?s prompted citizens to purchase. ...read more.

Middle

The current crisis came from the financial institutions. In the advanced countries, almost all financial and monetary institutions have been bankrupted. It is the institutional crisis? (Prabhakar 1). The National Institute Economic Review carries a similar mentality, claiming that, "The main message is that while monetary policy should 'lean against the wind' when asset bubbles are developing, the crucial fault was a lack of macro prudential regulation, partly because of an institutional silo mentality" (The World Economy 66). Both of these convey the idea that there are not an excess of similarities between the Depression and the Recession; the Great Depression was a result of overproduction accompanied by a lack of demand, while the Recession was prompted by poor decisions made by the financial companies. ...read more.

Conclusion

the ability of certain firms to meet their obligations, their access to capital markets as well as to short-term funding markets became increasingly impaired, and their stock prices fell sharply" (Bernanke 1). This directly expresses that an unsupported optimism was not the source of economic stress; the decisions, actions, and policies of companies brought economic distress. The sources all conclude that the original statement could not be considered the main cause of both the Great Depression and the economic Recession of 2008. While the original statement can be supported it is more reasonable to conclude that the economic crises of both the 1920?s and the 2000?s were partially due to unsupported optimism in the market but largely caused by poor economic policy and bad decisions made by businesses and corporations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate History section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate History essays

  1. The Roaring Twenties in Australia.

    More shocking still was the sight of high-heel shoes. Women began to smoke and drink, to apply make-up in public, to wear their hair short and to go swimming in revealing bathing costumes. Increasing numbers of women also learnt to drive.

  2. Band Of Brothers

    The recruits came into basic training with the mentality to try and make the best of a very bad situation, that being the war and the possibility of being killed. In order to make the best of their predicament, they set out to learn the most the Army could teach them.

  1. Life in the USA 1920's

    Farming was in serious trouble. Farming income had seriously dropped in 1928 and soon, the market was exceeded in goods. Prices fell at the same time unemployment was rising up. By 1929, the economy was already failing. Finally the Wall Street stock Market crashed. It can be said that it was mostly caused by speculation,

  2. American Political Parties: Past and Present

    The opposite of the Federalist Party is the Democratic-Republican Party. Some of the main beliefs of the Democratic-Republican Party is that they believe that the people should run the government. The Democratic-Republicans did not want the wealthy Americans to rule because they thought that the Federalists would think for themselves and not the common people.

  1. IB History HL, Extended Notes: Russia, the Tsars, the Provisional Govenment and the Revolution.

    be adopted because ?Life has exposed our errors?There was a need of a series of transitional stages to communism.? Main features 1. New tax system was introduced at a lower level. 2. New currency introduced.

  2. 20th Century History Revision Notes

    Evacuation of Dunkirk -1940: Germany invaded France and were surrendered around to Dunkirk beach, trapped 300 000 soldiers. -British and Canadian troops helped trapped soldiers in boats. -Allies had to leave heavy war equipment; destroyed it so Germans couldn?t use it.

  1. To what extent did women gain social equality during the 1920s?

    Section 1. of the proposed equal rights Amendment to the U.S. Constitution stated that ?equality of rights under the law shall not be denied or abridged by the United States or any state on account of sex.? (Schultz and van Assendelft 275)

  2. Notes on the History and Development of the Arab-Israeli Conflict

    - The PLO is the most important proponent of Palestinian nationalism, formed in January 1964. They aimed to remove Zionism from Palestine, engaging in an armed struggle, and reject all historical events that occurred between 1918 and 1964. Palestinian nationalism and the PLO has had several forms since the 1948 war.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work