There are a few events that led to the great depression that are important to consider in the current economic condition. The depression was triggered by the stock market failure of 1929. Most people borrowed in banks and other financial institution to invest in the overvalued stock market.  When the stock market collapsed, investors lost the borrowed money and banks collapsed. Depositors also lost their money since the banks were not insured. In the current economic conditions, borrowing should be regulated. Though banks are insured, any failure will still affect the depositors.  Again, their stock market needs to be regulated to avoid any failures.

When Franklin D. Roosevelt (FDR) took office as the president, he initiated different programs to help those affected by the depression. The Republicans of the time however argued that the market should be allowed to correct itself. They argued that the citizens should be left to take care of themselves. Government intervention according to them was a waste of resources since it would not correct the market.

President FDR initiated the New deal which was programs aimed at helping the public. In my view had the new deal not been put into place, the economy would have fallen completely. In times like depression, policies need to be initiated to salvage the remaining resources and also boost the economy. The idea of the people taking care of themselves was the cause of the stock market collapse. Had there been enough regulations in the financial sector at the time, some of the events leading to the great depression would have been avoided. In addition, when the economy is in depression, the people can do little to boost it as compared to what the government can do.

 
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