The results of the credit crunch Essay Example | Topics and Well Written Essays - 2000 words

The results of the credit crunch - Essay Example Significant sums of money were pumped into the economy in order to facilitate its expansion. Though a number of banks failed it was proportionately far less than had occurred during the Great Depression. The Obama Administration did not just sit and watched as happened in 1929. They acted and they did so swiftly. It was this swift action that resulted in less jobs being lost as would have been the case if things were allowed to work themselves out. The government did whatever it could to meet with automobile manufacturers and other business interests to prevent the industry for collapsing. This helped to save a number of jobs in that industry as well other industries that supplied them with raw materials and services.     It should be quite obvious from the foregoing that the Great Recession was not as severe as the Great Depression of 1929 which lasted for more than a decade. Things could have been even worse if the response was similar to that of the 1930’s. What is ther efore significant is that things were not allowed to run their course as happened in the 1930’s. While World War 11 appeared to have shortened the period of the Great Depression of the 1930’s, it was the intervention by the Obama Administration in the United States that prevented this from getting to the stage of the Great Depression of 1929. It is therefore important that it is clearly understood that the results of a situation is affected by the response mechanisms that are put in placed to deal with the situation.