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The paper aims to study the comparisons between the Great Depression and the recession that was experienced during late 2000 by the economy. These comparisons are made in order to identify the differences as well as the similarities between the two economic situations that threatened to destabilize the financial progress that was being made on the economic platform during these periods of time. Though both situations threatened to send the financial state of the business worlds into disarray, it can be observed that the situations were not exactly similar to each other though both possessed some of the same characteristics that described the financial turmoil faced in these times. Various factors were considered and studied while making these comparisons so as to paint a clear picture of the situation that was faced at both times. Some of the elements that were studied include the employment rate which was one of the more essential elements in both scenarios and the main cause of the economic struggle that was faced by individuals during this time, the area of influence that both economic downturns affected which assisted in determining the level of seriousness of both circumstances, and related factors such as the real estate sector which are areas that are normally affected by such situations. The study of these various factors allows one to have a closer look at the areas of concern and can assist one in determining what went wrong as well as the steps that were taken to correct the imbalance that resulted. This is essential when setting up steps and precautions by the financial world in a bid to avoid another economic downturn in the future. A wise man once said that man is able to learn from past mistakes and experiences and this paper aims at doing just that a it studies these two financial difficulties that were experienced by the world and threatened it with economic downfall.

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