A Comparison Between the Great Depression and the Global Crisis

The 1929 stock market crash and the subsequent ‘great depression’ was the biggest economic crisis that the world has experienced. The depth and length of the crisis and the suffering that it caused is legendary. Therefore when the global financial crisis struck in 2007, many rushed to proclaim that we were about to experience another depression on a similar scale, or at least what some have termed a ‘great recession’. This paper will compare and contrast the two economic crises to analyse the key similarities and differences between the two. To do this, the paper will firstly provide an outline of the conditions that led to the 1929 crash in the economy. Moving on from here the paper will then look at the policy responses that were implemented to tackle the crisis before analysing the conditions that precipitated the 2007 financial crisis and the policy responses, to draw out the similarities and differences of each of the crises, and to ascertain were any lessons learned during the current global crisis from the policies of the great depression era. Finally the  paper will conclude with a discussion of the main points raised by the analysis of both crises and a look at the future prospects for recovery.

Globalisation. Myth or Reality?

The term globalisation is one that is used with ever increasing frequency as if it had a universally accepted meaning and definition.  According to Modelski, globalisation is a historical process which is characterised by a growing engagement between peoples on all corners of the globe (Modelski, 2003, pp.55-59).  However, as Heywood points out, it can refer to various things such as processes, policies, strategies, an occurrence or an ideology.  He suggests, its elusive meaning lays in the fact that it “is not so much an it as a them” (2007, p.143).  The reason for the elusiveness of the term is that, as Heywood pints out, it involves many different facets which many different academics proclaim as its defining features.