Great Depression vs. 'Great Recession' Comparisons between this economic recession and the Great Depression are common, but the granddaddy of all downturns was far worse. By , CNNMoney.com staff writer CONTENT Great Great Depression Recession 9,096 50% of banks 57 0.6% of banks – – Bank failures (Jan. 1930 March 1933) (Dec. 2007 May 2009) Unemployment rate 25% 8.5% -3.3% -26.5% Economic decline1 (Second quarter 2008 - first (1929 - 1933) quarter 2009) -89.2% Biggest decline in Dow Jones -53.8% (Sept. 3, 1929 July 8, industrial average (Oct. 9, 2007- March 9, 2009) 1932) -25% +0.5% Change in prices (1929 1933) (Dec. 2007-March 2009) 2.5% of GDP for 2 years2 1.5% of GDP for 1 year (2009 American Reinvestment Emergency spending programs (Increase in 1934 budget and deficit) Recovery Act) Federal stimulus plan gives fiscal relief to States response Raise taxes, cut spending states to lessen impact of tax increases Increase in money supply by 17% 125% (1933) (September 2008 May 2009) Federal Reserve Source: FDIC, Federal Reserve; Commerce Department; Dow Jones; Christina Romer, Obama economic adviser, Lessons from the Great Depression for Economic Recovery in 2009 (March 9) and JEC testimony
Great Depression vs. 'Great Recession' Comparisons between this economic recession and the Great Depression are common, but the granddaddy of all downturns was far worse. By , CNNMoney.com staff writer CONTENT Great Depression Great Recession Bank failures 9,096 – 50% of banks (Jan. 1930 March 1933) 57 – 0.6% of banks (Dec. 2007 May 2009) Unemployment rate 25% 8.5% Economic decline1 -26.5% (1929 - 1933) -3.3% (Second quarter 2008 - first quarter 2009) Biggest decline in Dow Jones industrial average -89.2% (Sept. 3, 1929 July 8, 1932) -53.8% (Oct. 9, 2007- March 9, 2009) Change in prices -25% (1929 1933) +0.5% (Dec. 2007-March 2009) Emergency spending programs 1.5% of GDP for 1 year (Increase in 1934 budget deficit) 2.5% of GDP for 2 years2 (2009 American Reinvestment and Recovery Act) States response Raise taxes, cut spending Federal stimulus plan gives fiscal relief to states to lessen impact of tax increases Increase in money supply by Federal Reserve 17% (1933) 125% (September 2008 May 2009) Source: FDIC, Federal Reserve; Commerce Department; Dow Jones; Christina Romer, Obama economic adviser, Lessons from the Great Depression for Economic Recovery in 2009 (March 9) and JEC testimony