The Comparison Between Recession and Great Depression

THE COMPARISON BETWEEN GREAT low gear AND RECENT RECESSION AND THEIR EFFECT IN CUSTOMER SERVICE The gravid Depression had a great(p) impact in the unite States prudence from 1929 to the late 1930s. M either people mixed-up their jobs, savings, and homes. They were not sure intimately their future.Also, at the end of 2008, the United States and umteen developed countries faced a great niche than had par al geniuseled the enormous Depression, such as excessive assign given to normal citizens (which was promoted by Federal Reserve Bank), irresponsible coin spending by the people in the United States that spread to the virtually countries in the world, the production line market crash, and the failure of the real stir market.Although, the slightons that governments acquire from the Great Depression made them to be creative in preventing the 2008 turning point becoming other great embossment, or at very least try to postpone this issue by being united to gage out priva te sectors specially financial institutions. It is very interesting that all the developed countries ignored to correct some problems that could prevent the 2008 recession. After the show date World War, Germ whatever and m either an(prenominal) another(prenominal) other European countries time-tested to recover from the great financial damage that was caused by the war.They needed funds to rebuild their countries, and the United States started to give excessive line of credits to the above countries. Also, because the United States thriftiness was booming by growth in the in constellaterial sector which brought many people to work for factories and auto makers. Gradually, many companies started to solicited to sell their product on credit instead of coin, and in the beginning of the 1920s , more families were get familiar with getting installment imparts to deprave their needed products. Also, many banks started to loan farmers which brought a great amount of cash flow fo r many farmers.Furthermore, this thriftiness boom made the rise in the stock(a) market. It was for the first time that the margin was introduced to the stock market, which simply meant that stock defileers can buy up money against heir stocks as collateral to buy more stocks. Many citizens borrow a crapper of money from banks, and put their own savings to buy more stocks. T his greedy action made a cardhouse in the stock market and made it soared in 1920s, not because of fundamentals or corporations productions and profits, but for false expectations of stock vendees.Of course, this bubble came to the end at October 29, 1929, that is known as a black Tuesday. In this day stock market was crashed. And over a two years occlusion lost 24 % of its value. Black Tuesday also represents the beginning of the Great Depression during this period many Americans lost their jobs, houses, and farms, because they couldnt afford to pay their installment loans any more. For many years Ameri can farmers overplanted their farms, and poorly managed their crop rotations.Between 1930 to 1936, when droughts conditions made a great damage to many farms, and prevailed a cross a nap of Americans plains. Dust bowl was created. The patter storm started to harm some states identical Colorado, Texas, Kansas, Oklahoma, and later on spread cross entire United States. The dust bowl got its name after Black Sunday, April 14, 1935. More and more dust storm destroying plains, up to that year. Before the Great Depression because a lot of European countries started to amend their agriculture in mid 1920s, it created a cud produced and great reduction in farming products.To protect the domestic American farm products against agriculture imports, US government raised US tariffs to the spunky level, which is also known as the Smoot-Hawley Tariff Act of June 1930. Because there was less demand for consuming products except food, therefore factories had to fire many of their workers which were another cause to the Great Depression. Primary sector industries such as cash cropping, mining and lodging suffer the most. Many Americans were going through a very difficult time and couldnt even afford to buy foods.The shelters were full and America and many countries were filing for bankruptcy. The American dollar and many European currencies were not back up by gold any more. The items like cars which were diged a luxury material, and cost fortune at one time, did not worth any more. One of the main other causes for the Great Depression was Failure of the banks around the world including the United States that created by the crashing of the stock market , and filing bankruptcy by all developed countries.Bank couldnt loan no more to their customers therefore they began to collapse and were closed. President Roosevelt tried to offset the economy by creating a lot of jobs in open sector in 1930s by making Hoovers Dam or cleaning streets by the public. This strategy by itsel f didnt change the economy per se, so by the end of 1939, there was silence no improvement in US economy. The main reason for the convalescence was in the beginning of 1941. The World War II made many countries in Europe to import again from the United States that gradually created many jobs by reopening major factories.One of the great similarities of the Great Depression and the late recession were the failure of financial corporations, crash in the stock market which was created by the same reason ( giving excessive margin buying place to stock holders) , and greed by wealthy people. Although, the booming real state from 2003-07 could be considered as some distinguished factors. There are a lot of lessons we can learn form the Great Depression and recent rescission that deregulating stock market and financial sector and handing an economy to the big corporations doesnt have any consequences but a incident to average citizens.Customers would lose a lot of their purchase power in a great deal, during recession or depression. Therefore, companies must sacrifice to ramble the value price of their services and products, and do whatever it takes in hallow to keep their customers. During this time it is a customer or a buyer market. If the companies lose their consumers to the competitors due to the lack of customer service, it would be very unverbalized to replace that. The margin profit would be very low and it would collapse the companies with no choice but to cut the cost and overhead expenses.Companies should consider that the customers are always right and they should be heard at any times. They have to come with any creative idea to improve their relations with their customers. In conclusion, we have to learn many lessons from the great depression and the recent recession. With comparing the roots for these two economy disasters, we would have the go understanding that how companies improve their customer service during the financial difficulties for their customers and consumers.