Many people argue that the current recession could approach the pain caused by the Great Depression of the 1930s. How are the situations alike, and how are they different? How is the U.S. Chamber responding today compared with how it responded in the 1930s? What conclusions can be drawn from history?

Today's recession and the financial crisis some 80 years ago have some things in common—incredibly poor risk analysis and inadequate regulation. Excessive speculation, along with a "shadow" banking system subject to little regulation or oversight, sowed the seeds of economic collapse both then and now.

In 1929, U.S. Chamber Chairman Julius Barnes noted how the business community needed to help deal with the crisis. He said: "American businesses [should] tender sober and experienced advice, yet preserving the creative value of the ambition of better individual fortune."

In the 1930s, the Chamber responded the same way as today—making economic stabilization the fi rst priority; supporting stimulus measures that would jump-start the economy, create jobs, and keep credit flowing; and opposing those measures that hurt growth and undermine businesses. Back then, the Chamber unsuccessfully opposed increased taxes and trade protectionism, which made things worse. (Policymakers, take note!)

What's different? The impact of the current recession—while causing great pain—will be much shorter and shallower than the Great Depression. Remember, unemployment throughout much of the 1930s hovered around 20% to 25%. There wasn't a significant social safety net. The Federal Reserve had far fewer tools to blunt the impact of the crisis.

Another difference—the business community at that time was seen as a valuable partner in addressing major national challenges. One of President Herbert Hoover's fi rst actions after the crash was to invite industry titans—the heads of Standard Oil, GM, Bethlehem Steel, and others—to the Oval Offi ce seeking their advice. Can you imagine the howls of protest such a meeting would elicit today? Business is still doing great things to advance the nation's interests, but its image has taken a beating.

There are two lessons from the Great Depression that we can apply today. The first is captured by Chamber President Harper Sibley in 1936 when he discussed what it would take to right America's economy: "It can be met only by hard, cooperative work and the exercise of that most valuable attribute, still deep rooted in the American people—common sense."

The second is simple—we emerged from the Great Depression stronger, more prosperous, and more powerful and went on to accomplish great things. The same thing will happen today. Count on it. U.S. Chamber of Commerce