History & Area Studies / Thematic History / Economic History & Industrialization

The 1929 Trade Collapse vs 2008: What History Reveals About Economic Crashes

Alan de Bromhead, Alan Fernihough, Markus Lampe, Kevin Hjortshøj O'Rourke

Did you know the 1929-1933 Great Depression trade collapse in the UK was far worse than the 2008 crisis? This video dives into a groundbreaking study by Alan de Bromhead, Alan Fernihough, Markus Lampe, and Kevin Hjortshøj O'Rourke, published in 2018. It compares the anatomy of these two major trade collapses, revealing shocking similarities in how consumer spending shifts—like abandoning durable goods—and how prices for branded products barely budge even during a crash. But here's the twist: the 1930s saw massive deflation driving 83% of the import value drop, while 2008 was all about quantity. Plus, Britain's shift to protectionism in 1931 created a huge imbalance, with empire trade actually growing while foreign trade crashed 30%. Watch to uncover the hidden patterns that link these crises and what they mean for today's economy.