Comparaisons : Economy during the Great Depression and Economy Today
Updated: Aug 21, 2021
In 1929, the American stock market collapsed, share prices dipped with everyone trying to sell off whatever shares they held. In the two weeks that followed, 30 billion dollars of wealth vanished in the United States. This recession then spread to the rest of the world, causing tens of millions of people to lose their jobs and millions died worldwide. “This isn’t a conventional recession; it’s more like a medically induced coma, where you temporarily shut down much of the brain’s activity to give it a chance to heal,” said the Nobel Prize-winning Economist Paul Krugman. With the virus hitting the world hard, social distancing measures are forced to be implemented. This has halted the world economy and already, close to two million people have lost their jobs worldwide, shops are being closed and companies are filing for bankruptcy.
With COVID-19 acting as the breaks, the world economy has also lost its drive to continue growing. All we can do is to hope that with the developments in economic policies, social welfare and general living standards, we are able to minimize the impact of this upcoming recession and less people will suffer.
Written by: Thomas Zhu