Kylee influenced the Great Recession of 2008.Kylee influenced the Great Recession of 2008.

Kylee RobertsonUnit 8 EssayThe Panic of 1819 was the first major financial crisis in the United States. It helped influenced the Great Recession of 2008. The Great Recession of 2008 was a period of general economic decline. Even though these events happened during different time periods, they are still closely related to each other. The Panic of 1819 influenced the Great Recession of 2008 by generating hostility towards the Second Bank of the United States, helping correct the financial issue, and increasing unemployment throughout the United States.     During the Panic of 1819, banks failed throughout the country and mortgages were foreclosed, causing people to leave their homes and farms. The drop of prices damaged agriculture and manufacturing. This especially hit hard in places like Philadelphia, Pittsburgh, and Cincinnati. All of this led to extensive unemployment in the United States. James Monroe was the president during that time. He didn’t respond forcefully and was derided for it, but he did support the policy to relax payment terms on mortgages for lands purchased from the federal government. Banks were forced to go into bankruptcy because they didn’t have enough gold and silver to cover the withdrawal requests. “The depression lingered for two years” (Reynolds, 2009).                 “The Great Recession of 2008 started when the economy decreased 0.7% in the first quarter” (Davies, 2010). Experts didn’t realize this until the economy started a slump that lasted for four quarters in a row. Customer spending and business investing decreased which led to massive job losses. Job loss in the Great Recession of 2008 was by far the most critical since WWII. In March 2009, Congress approved Barack Obama’s $787 billion Economic Stimulus Plan. The plan ended the Great Recession of 2008 by July of 2009. The outcome of the Great Recession of 2008 is the massive losses which caused many banks to tighten their lending requirements.     The Panic of 1819 and the Great Recession of 2008 were very similar in their bone of content. “It sounds like a recap of the 2008 meltdown, but these events happened more than a century ago; many happened more than once” (McClain, 2011). Each of them had a financial issue that resulted in vast unemployment for the entire United States. The Panic of 1819 generated hostility towards the Second Bank of the United States, just like many free market economics blame the Federal Reserve System for the Great Recession of 2008. The power of a government-backed national bank to distort the national currency for financial or political gain has been the subject for a debate over central banking in the United States that is persistent today.In conclusion, the Panic of 1819 influenced the Great Recession of 2008 by generating hostility towards the Second Bank of the United States, helping correct the financial issue, and increasing unemployment throughout the United States. The Panic of 1819 and the Great Recession of 2008 caused the United States to enter another depression. This caused many recurring patterns of financial issues in the past and in the future.    Work CitedDavies. Timeline of the Great Recession. CNN. 2010Preston. James Monroe. Miller Center. 2009, https://millercenter.org/president/monroe/domestic-affairs  Coffey. The Panic of 1819 and Today. 2012, http://www.teapartytribune.com/2012/03/23/the-panic-of-1819-and-today/ McClain. Great Recession? Let’s call it the Panic of 2008. 2011, https://www.wm.edu/news/stories/2011/great-recession-lets-call-it-the-panic-of-2008-123.phpReynolds. Panic of 1819 The First Major U.S. Depression. 2009, https://www.theglobalist.com/panic-of-1819-the-first-major-u-s-depression/