With the U.S. suffering its worst financial crisis since the 1930s, many analysts and investors have compared today’s economy to the one of that period as well.
But while we may be suffering the worst recession since the 1980s, it’s nowhere near as bad as the Great Depression of the 1930s. Some experts even maintain that the recession already is ending.
Here are some numbers to compare our Great Recession to the Great Depression, from CNNMoney.com.
Notice the stronger policy response now, in addition to the smaller damage.
Now: 57 (Dec. 2007 to May 2009)
Representing 0.6 percent of all banks
Then: 9,096 (Jan. 1930 to March 1933)
Representing 50 percent of all banks
Now: 9.4 percent
Then: 25 percent
Now: 3.3 percent (Second quarter 2008 to first quarter 2009)
Then: 26.5% (1929 to 1933)
Largest Drop in Dow
Now: 53.8 percent (Oct. 9, 2007 to March 9, 2009)
Then: 89.2 percent (Sept. 3, 1929 to July 8, 1932)
Change in Prices
Now: +0.5 percent (Dec. 2007 to March 2009)
Then: -25 percent (1929-33)
Now: 2.5 percent of GDP for two years
Then: 1.5% of GDP for 1 year
Increase in Money Supply
Now: 125 percent (September 2008 to May 2009)
Then: 17 percent (1933)
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