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.

The Crisis Of Capitalism: What Lies Ahead?

We are often told by the innumerable economic commentators on the issue, that we are currently experiencing the worst financial crisis since the 1930s. However, the current crisis is in many ways different to others because of its globalised nature and because of the ‘advanced’ form of capitalism it exposes. It must be recognised that capitalism as a form of investment in manufacturing has been in decline since the 1970s, with modern ‘advanced’ capitalism now based on financial speculation. The crisis we are experiencing illustrates that far from being part of a boom and bust process, the inherent greed that capitalism predicates itself upon has led to the system destroying itself from the inside out.

The Irish Dream. Time To Wake Up!

I was pondering recently just why it is that us on the left seem to be consistently correct in our economic and social analysis, yet many in the mainstream consider us to be uninformed loonies or economically illiterate. It was then I remembered a video I had seen of the late and great George Carlin entitled “The American Dream” "Video Clip" and I realised that Irish Society is living in a collective dreamworld, and needs to wake up fast.

A Critique of the IMF

Recent years have seen growing criticism of the International Monetary Fund. What are these criticisms and are they justified?

“It is important to note that IMF programmes are not designed to increase the welfare of the population. They are designed to bring the external payments account into balance.... The IMF is the ultimate guardian of the interests of capitalists and bankers doing international business” (Kari Polanyi Levitt, cited in Torrie, J. 1983, Introduction).

Ireland's Future. Lessons From History

Since early 2007, the world capitalist free-market economic system has been experiencing a systemic crisis.  A report circulated by the Organisation for Economic Co-operation and Development (OECD) in 2008 stated the crisis was caused by “global macro policies affecting liquidity and by a very poor regulatory framework that, far from acting as a second line of defence, actually contributed to the crisis” (Blundell-Wignall et al, 2008, p. 2).  As a small and open free-market based economy, Ireland was caught in the contagion from the unfolding crisis of world capitalism.  However, far from being an innocent victim of conditions in the world economy, the Irish state’s economic problems were the result of both international and domestic factors.