Great depression and Great Recession

Great depression and Great Recession

The Great Depression started with an almost benign recession which turned into the Great Depression as a result of a misguided government policy of the Hoover administration: after the economy went into a recession triggered by the stock market crash in 1929, taxes were increased to 50% with the goal to reduce the budget deficit, and even worse, the money supply was allowed to decline by 31% between 1929 and 1933, nothing was done to stop the panic and loss of confidence caused by bank failures, and protectionist measures were introduced to protect ...