Well, let me start by saying this is a pretty big question and even after hours of research and thought, there's no way I'll be able to cover everything, as I'm not an economist and cannot begin to fully understand these two crises. Even worse, I find it very difficult to relate this question to the world of art and technology but I digress and shall try my best.
There are a few very obvious similarities and differences between these two different economic crises. First, its important to not the difference in time and the advancements that separate the two. The 2008 crash was entirely different from the one in 1929 because of the birth of the internet and our multimedia society. Because of social media, international news sources, and our advanced system of communication, word spread about the crises across the globe giving it more attention and the ability for people to collaborate and face our problems together.
Another major difference is that the crash in 1929 had to do primarily with the stock market while the one in 2008 had more to do with the housing market. The Economic Populist summarizes the differences pretty well, explaining that the crash of 1929 was due to the collapse of the "Main street economy" and everything that followed. In 2008, however, it was the financial sector that fell first, and a completely different order of effects occurred. (Economic Populist) Chuck Johnson from Tano Capital notes that in both situations, "Common to both crashes is the first step of easy and available credit." (Johnson)
One last, but very important, difference between these two situations is the amount and quality of government involvement. Being one of the first major economic disasters the US has had since its birth, the government could not have been fully prepared for what was going to happen. Not even skilled economists and brokers fully understood what was happening up to the point of the crash. In 2008, we've experienced a handful of financial troubles and in each situation the effected parties have learned and put in place precautions to prevent future calamities. Obviously though, we could never be TOO prepared. Its also important to note the differences in the Hoover administration and Bush/Obama administrations and how it effected their reaction to the situation. In 1929, the United States government was interfering in private business and economies for the first time something that still sparks debate today. The Hoover administration and all involved parties had to be resourceful and creative, leading to tax cuts and government regulations, much like the government did in 2008. In 1929, however, the government also implemented social and public welfare programs. In Johnson's essay, he writes, "The Hoover policy was to exhort people to think positively, to work harder and to accept personal and local responsibility to expand in order to offset the effects of the crash. He tried to carry the message to the nation that business was sound and that he intended to provide a framework in which the nation could continue to prosper." This is very different than the 2008 situation where panic and finger pointing were the initial reactions and it became all about the business, banks, and markets and less about the welfare of the people. (Johnson)
A comic illustrating one of the major differences (Pakos.me)
I would like to conclude by relating the subject to art and technology, as this course is designed. As I've said before in an earlier post, art will always work in tandem with society and culture. In both 1929 and 2008, society and consequentially, the culture, were effected in the aftermath of the crashes. As was mentioned in the video we watched in class on broadway, film and music, specifically, took on a somber tone in light of the depressing times. During the Great Depression, spirits were down and the art of its time began to reflect that. On a kind of obvious note, resources became less available because of the terrible economy. As a result, artists weren't being paid as much and were therefore unable to create. 2008, however, didn't exactly see the same consequences. The 2008 financial crisis effected different people on different levels. For the lower and middle classes, times were hard and they experienced something quite like the great depression. The upper class as a whole, however, didn't feel the shock in the same way and in this modern age, the upper class are the artists (at least in popular culture). Were someone to look back on this time, one would see almost no noticeable differences in the art before and after the crash because the pop artists and hollywood stars were not clearly effected. Not even the subject matter changed during this time.
http://pakos.me/2008/11/14/best-of-craigslist-do-not-eat-pringles-fat-free-potato-chips/
Johnson, Chuck 2008 http://www.tanocapital.com/news/2008/11/14/tano-capital-reseach-the-crash-of-2008-vs-1929-similarities.html
http://www.economicpopulist.org/content/great-crash-1929-vs-panic-2008
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