The Depression, Recession, and Business Cycle Essay example

The phrase â€Å"History repeats itself† is a commonly used paradigm when it comes to events that happen in a repetitive notion. The recession that has recently been witnessed by the millions is a great example of history repeating itself. How did it happen, did we know it was going to happen, and was there anything that could have been done to prevent it? There are a multitude of questions that could be asked, with the most important of them all, will it happen again? In just the past two hundred years, the United States has seen â€Å"Black Friday† in 1869, â€Å"The Great Depression† in 1929, and the most current recession of 2009. Recessions, depressions, inflation, economic boom, these are all terms used to describe the financial events that†¦show more content†¦will see much more financial heartache between 1837 up to the largest downturn in history in 1929, the Great Depression. The great depression, up to date, was the longest and most devastating financial period recorded in history. This time it didn’t have to do with land prices falling, or the falling out of cotton exportation, but it was primarily affected by the stock market prices falling. This event would change the American ideals of economics and politics forever. President Herbert Hoover was in office during the onset of the depression. Hoover was a well rounded individual He worked in mining as a young man, traveling the world to develop and supervise mining operations. He published the book â€Å"Principles of Mining† which became a staple text book in most mining schools and helped spread his reputation across the nations. During the beginning stages of his reign as president, which began in March of 1929, he made several successful accomplishments from stopping the twelve hour workday in the steel mines, reorganizing the European economy, reopening mines, and creating the Agricultural Marketing Act. Although he had many early successes, they would be short lived. By October of 1929, the stock market had crashed. Hoover would become the victim of a devastating event that he had no control over. Although congress felt that Hoover had failed, economist such as William Foster and Waddill Catchings felt that he had been very well prepared. Even the NewShow MoreRelatedMacro Economics - Business Cycles1410 Words   |  6 PagesBusiness Cycles Business Cycles ââ€" º The value of real GDP over time shows periodic fluctuations in its movement ââ€" º The business cycle refers to the periodic fluctuations of economic activity about its long term growth trend ââ€" º The Business cycle is the more or less regular pattern of expansion (recovery) and contraction (recession) in economic activity around the path of trend growth. ï‚ § At cyclical peak, economic activity is high relative to trend ï‚ § At a cyclical trough, the lowRead MoreEffects of Business Cycles1731 Words   |  7 PagesIntroduction In general the economy tends to experience different trends. These trends can be grouped as the business/trade cycle and may contain a boom, recession, depression and recovery. 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