Another Great Depression? Term Papers

Could the US experience another Great Depression?  If the government chooses not to repeat its mistakes of the past, the answer is no.  Our knowledge of economics has improved significantly since the 1920s and 1930s and this knowledge should arm us with the information we need to make decisions that will prevent another Great Depression from occurring.  Although current economic issues such as the collapse of the Russian government and the problems in the Japanese economy have affected the US economy, a depression can be avoided by working with these major economic players in preserving their markets as well as our own.  The current boom in technology stocks has made some speculate that the inevitable decline of these stocks will cause a market crash.  A crash may occur; however, strategic moves on the part of the government will prevent the whole economy from entering a depression paralleling the Great Depression.  Finally, the Y2K issue was thought to perhaps contribute to a massive national panic, threatening runs on banks and general distrust of the government’s ability to manage the possible computer glitches that could threaten our whole economy.  With the clock ticking us past the Year 2000, the possibility for a market crash due to Y2K is gone. 

Thus, the history of the Great Depression in the US does not seem likely to repeat itself.  With increased knowledge of macroeconomics and the relationship between aggregate supply and aggregate demand, the US government is more prepared now than ever before to take the necessary steps to prevent another Great Depression.

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