Eli5 what protects us from having another great depression? Is it even possible for us to get there or are their measures in place to stop that ?
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There are a lot of protections now compared to then… floating currency and ability to print money vs. gold standard, ability to raise and lower interest rates, protections like FDIC insurance on bank deposits, strategic bailouts and stimulus programs…
The recession of 2008 could’ve been as bad were it not for bailouts in financial sector, programs like cash for clunkers, mortgage down payment grants, etc. and during COVID, the enhanced unemployment and PPP loans, freeze on student loans, etc. all helped prevent a bigger economic catastrophe.
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