scholarly journals Why Does the Economy Fall to Pieces after a Financial Crisis?

2010 ◽  
Vol 24 (4) ◽  
pp. 3-20 ◽  
Author(s):  
Robert E Hall
Keyword(s):  
United States ◽  
Financial Crisis ◽  
Great Recession ◽  
Financial Frictions ◽  
The United States ◽  
The Great Recession ◽  
The Great Depression ◽  
Real Gdp ◽  
History Of ◽  
Low Levels

The worst financial crisis in the history of the United States and many other countries started in 1929. The Great Depression followed. The second-worst struck in the fall of 2008 and the Great Recession followed. Commentators have dwelt endlessly on the causes of these and other deep financial collapses. This article pursues modern answers to a different question: why does output and employment collapse after a financial crisis and remain at low levels for several or many years after the crisis. It focuses on events in the United States since 2008. Existing macroeconomic models account successfully for the immediate effects of a financial crisis on output and employment. I will lay out a simple macro model that captures the most important features of modern models and show that realistic increases in financial frictions that occurred in the crisis of late 2008 will generate declines in real GDP and employment of the magnitude that occurred. But this model cannot explain why GDP and employment failed to recover once the financial crisis subsided—the model implies a recovery as soon as financial frictions return to normal. At the end of the article, I will mention some ideas that are in play to explain the persistent adverse effects of temporary crises, but have yet to be incorporated into the mainstream model.

scholarly journals Hall of Mirrors: The Great Depression, the Great Recession, and the Uses—and Misuses—of History

2015 ◽  
Vol 89 (3) ◽  
pp. 557-569 ◽  
Author(s):  
Per H. Hansen
Keyword(s):  
United States ◽  
Great Depression ◽  
Great Recession ◽  
Financial Crises ◽  
The United States ◽  
Comparative Approach ◽  
The Great Recession ◽  
The Great Depression ◽  
Successful Search ◽  
Similarities And Differences

Barry Eichengreen's new bookHall of Mirrorsis a detailed, excellent, and somewhat pessimistic comparison of the two most serious financial crises ever—their causes, development, and consequences. Readers well versed in the comprehensive literature on the Great Depression and the Great Recession in the United States and Europe will not find much information inHall of Mirrorsthat is completely new, but most others will. Whatisnew is the comparative approach: the detailed and analytically successful search for similarities and differences between the Great Depression and the Great Recession.

Combustible Hopes on the National Stage

2017 ◽  
Author(s):  
Judith Hamera
Keyword(s):  
United States ◽  
New York ◽  
Great Recession ◽  
Work Ethic ◽  
The United States ◽  
Economic Recovery ◽  
The Great Recession ◽  
History Of ◽  
The City

This chapter argues for Detroit as an image and an actual place that spatializes and racializes the affective fallout of deindustrialization using three plays whose 2013 New York runs coincided with both the city’s impending bankruptcy and the United States’ anemic recovery from the Great Recession: Detroit by Lisa D’Amour, Detroit’67 by Dominique Morisseau, and Motown the Musical by Berry Gordy. Each play uses Detroit to explore the interpersonal consequences of opportunities and crises in racialized capitalism. Each offers audiences intimate visions of the Fordist bargain in its seeming heyday, particularly compelling in a period of lackluster economic recovery. In this chapter I introduce the formulations “re-siting” and “re-citing” to analyze the ways elements of Detroit’s incendiary history of interracial confrontations are redeployed to support images of a capitalist work ethic transcending or succumbing to racist violence, and to link the city to a seemingly race-neutral contemporary precarity.

scholarly journals The Great Recession’s Effect on Entrepreneurship

2011 ◽  
pp. 1-4
Author(s):  
Scott Shane
Keyword(s):  
United States ◽  
Gross Domestic Product ◽  
Great Depression ◽  
Unemployment Rate ◽  
Great Recession ◽  
The United States ◽  
Domestic Product ◽  
Economic Downturn ◽  
The Great Recession ◽  
The Great Depression

Between December 2007 and June 2009, the United States suffered its biggest economic downturn since the Great Depression. Dubbed the Great Recession, this economic contraction saw gross domestic product decline 4 percent and the unemployment rate more than double from 4.9 percent to 10.1 percent.

Versatile and cheap: a global history of soy in the first half of the twentieth century

2013 ◽  
Vol 8 (3) ◽  
pp. 461-482 ◽  
Author(s):  
Ines Prodöhl
Keyword(s):  
United States ◽  
Twentieth Century ◽  
The United States ◽  
Second World War ◽  
Cash Crop ◽  
The Great Depression ◽  
Production And Consumption ◽  
Transnational Actors ◽  
History Of ◽  
Second World

AbstractThis article traces the complex and shifting organization of soy's production and consumption from Northeast China to Europe and the United States. It focuses on a set of national and transnational actors with differing interests in the global and national spread of soybeans. The combination of these actors in certain spatiotemporal contexts enabled a fundamental change in soy from an Asian to an American cash crop. At the beginning of the twentieth century, soy rapidly became Northeast China's cash crop, owing to steadily increasing Western demand. However, the versatility of soy – and soy oil in particular – offered a highly successful response to the agricultural and industrial challenges that the United States faced during the Great Depression and the Second World War. By the end of the war, American farmers in the Midwest cultivated more soybeans than their Chinese counterparts.

Locating Nowhere

2018 ◽  
pp. 17-36
Author(s):  
Michael Robertson
Keyword(s):  
United States ◽  
Great Britain ◽  
The United States ◽  
Late Nineteenth Century ◽  
Thomas More ◽  
Edward Bellamy ◽  
The Great Depression ◽  
History Of ◽  
Charles Fourier ◽  
Total Reconstruction

This chapter examines the proliferation of utopian literature in the United States and Great Britain during the late nineteenth century, mainly due to the economic and social upheavals resulting from industrial capitalism. In particular, it shows how writers such as Edward Bellamy and Thomas More came up with their visions of peaceful and egalitarian future worlds in response to the turbulence of their era. The chapter first provides an overview of the Great Depression experienced by both the United States and Great Britain between 1873 and 1896, a period characterized by extreme poverty and unemployment, before discussing the history of More's Utopia (1516). It then considers how utopian socialists in Europe and the United States, including Henri de Saint-Simon, Robert Owen, and Charles Fourier, devised schemes for the total reconstruction of society. It also analyzes Henry George's utopian vision, which he articulated in his 1879 book Progress and Poverty.

Our Daily Bread: ‘Cooperation’, ‘Independence’ and Politics in Mid-1930s Cinema

2016 ◽  
Author(s):  
Brian Neve
Keyword(s):  
United States ◽  
Great Depression ◽  
The United States ◽  
The State ◽  
The Great Depression ◽  
Box Office ◽  
Production History ◽  
History Of ◽  
Cooperative Activity ◽  
The Relationship

This chapter revisits and explores the production history of director King Vidor’s independently made movie, Our Daily Bread (1934), its ideological and aesthetic motifs, and its exhibition and reception in the United States and beyond, not least its apparent failure at the box office. It further considers the relationship between the film and contemporary advocacy of cooperative activity as a response to the Great Depression, notably by the California Cooperative League, Franklin D. Roosevelt’s New Deal, and Upton Sinclair’s End Poverty in California campaign for the state governorship. It also assesses the movie in relation to Vidor’s own cooperative vision through its emphasis on individuals and community as a solution to the Great Depression and the significant absence of the state in this agency.

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