Answer:
What made the Great Depression "Great" was the government response. Constant changes the regulatory environment, tax increases, massive deficits, and failure to let the market correct paralyzed the economy in its depressed state for 15 years.
Both were caused primarily by an over expansion of credit rooted in loose money supply. The monetary response to the current recession has been different. Rather than tightening to force the market to bottom, the Fed has maintained low rates in an effort to re-inflate the bubble conditions. Hoover/Bush & FDR/Obama responses are similar as all tried to spend their way out of the problem.
1929 crash:
After WWI, Britain reset the pound to the pre-WWI level even though their money supply had far exceeded pre-WWI levels. In an effort to slow the flight of gold from Britain, the US federal reserve (led by Benjamin Strong) lowered interest rates. As always, artificially low interest rates caused massive distortions in asset values. Money flowed into the stock market and people who would not normally have been stockholders bought stocks in place of other investments that would have yielded better interest rates absent fed policy. Margin was used excessively because the real cost of leveraging was distorted by fed interest rate policy.
The fed continually lowered interest rates all the way into 1929. When the bubble popped, they tightened policy and raised rates. This contributed the deflationary spiral; however, the deflationary spiral could not have been as severe without the loose policy during the bubble.
2008 crash:
Beginning in the early 1990s, the federal reserve (led by Alan Greenspan) lowered rates while monitoring consumer prices as indicators of inflation. They ignored bubbles in the stock market directly caused by their inflationary monetary policy. When the stock bubble popped, they lowered rates further and pushed misdirected investment towards other assets - most commonly housing.
After the attacks of 9/11/2001, the fed pushed rates to 0 (long term rates were effectively negative and continue to be).
Explanation:
I believe the answer is keynesian economists
Keynesians' view was heavily influenced by John Maynard Keynes, which advocated many forms of Government intervention in order to achieve full employment in society.
Things such as welfare, taxation increase,and housing assistance, are examples of Government intervention to allocate wealth from the rich to the poor
Michael charms his friends into going to the beach instead of a hiking trip for the summer he use Referent power to influence others.
Referent power is kind of power comes through charisma, admiration, or charm. Persons with this capacity are not required to occupy any office or possess any special abilities or knowledge. Here Michael is seen as role model.
A special kind of personal power is referent power. Instead of relying on compulsion or manipulation, it is based on respectful interpersonal interactions. Organizations today place more emphasis on fostering relationships and teamwork. Referent power is hence becoming a crucial leadership tool.
to learn more about referent power here
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The senate is the upper house of congress
