Current political cartoon about the Recession
Political Cartoon from 1873
Thursday, May 14, 2009
Panic vs. Recession
It is always amazing to me when learning or teaching about history how much that is going on today are problems that we have faced before. In light of what we have been learning and what is going on in the world today I want you to find out the similarities and differences between the Panic of 1873 and today's Recession. What caused the Panic of 1873 and what caused today's Recession? What happened during the Panic of 1873 and what is happening now (i.e. bank failures, stock market crash, etc.)? How long did the Panic of 1873 last? How did the nation recover from this Panic?
Current political cartoon about the Recession
Political Cartoon from 1873
Current political cartoon about the Recession
Political Cartoon from 1873
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Panic of 1873:
ReplyDeleteCause: Jay Gould and Jim Frisk attempted to corner the gold market in 1869, causing government gold to be for sale
Happend: A chain reaction of bank faliures and temperaraly shut the NY stock market down and factory workers were layed off.
Last: 1873 to 1877
Today:
Cause: Mortgage Probs
Happend:5.1 million workers layed off
The panic of 1873 was caused by several powerful eastern banks ran out of money after making bad loans. Todays recession was caused by the liberal Democratic Congress, specifically Barney Frank and Chris Dodd, forced banks to give mortgages and other loans to people with no income, no job and no assets. The banks and mortgages were not paid back by these people . This started a 'domino effect'. During the panic of 1873 banks across america closed. The stock market temperarily collapsed. The panic caused economic depression, a time of low business activity and high unemployment. The railroad industry suffered, then midwestern farmers had no way to move their crops, and many farmers were ruined. During the recession right now from my point of view i know that the stock market crashed, alot of banks closed, alot of people lost their jobs, its harder to buy houses now, because people didnt pay back their loans. People are also losing money in the bank. The panic of 1873 lasted about 5 years. I dont know how the nation recovered from that buti do know that many americasn blamed it on the republicans, so in 1874 democrats won most victories. And as a resutl of the economic problems the nation lost intrest in reconstrustion
ReplyDeleteThe Panic of 1873 was caused by the bankruptcy of several banks which made everyone panic--hence the panic of 1873. Today's recession was similar except it was the public who caused the banks to go bankrupt (namely Jay Cooke).The recession and panic are pretty much the same except now in addition, we have a real estate crisis and a credit crisis as well. The panic lasted for 5 years. It recovered by the gov't's decision to recall all greenbacks from circulation.
ReplyDelete-marianne
Causes of ressesion now: Risky bank loans, people putting too much on credit, there was too much on the market and not enough people to buy it, stocks were overvalued, and finally people were living beyond their means.
ReplyDeleteCauses Of Panic of 1873: Looooots of money was spent on the war, gov't didn't intervine enough to make sure the right goods and services were provided, and they over build railroads and docks (too much plan, not enough $$$) They also did NOT focus on banks, and while banks shut down, people lost their money ):
Similarities: Nowdays people invested too much money in a project (housing developments, road construction, etc.) which is alot alike what happened in the Panic of 1873 with the docks/railroads. lack of goverment control in goods in services or the banking industry were also apart of both (Not Obama's fault, fyi...or grants for that matter (: ). Finally, as stocks got inflated and panic set in, too many people sold their stocks and the market crashed.
Recovery for Panic of 1873: ): Recovery wasn't realized until 1878 O: HOPEFULLY Obama does his thing and our recovery doesn't take that long. I mean i don't no MUCH about what is a fast vs. what is a slow recovery, but if anyone can make a panic(or recessian) away faster than 5 years, Its Obama (: It'd better be faster then 5 years because i'll be heading into college then and i'll have to pay for my own things! :O We wouldn't want those things to be expensive now would we? (:
Hehe, anyway, woo that was a lot of typing, hopefully it was worth a lot of points?
P.s. I hate the stupid word pattern things you have to type. I always mess them up ):<