Final answer:
During the depression of 1873, countries followed various policies, with Britain reducing tariffs and the U.S. adopting a tight money policy. In contrast, the Great Depression saw significant government intervention through the New Deal in the U.S., emphasizing economic regulation and social welfare.
Step-by-step explanation:
In response to the depression of 1873, many countries adopted different economic policies. Governments across the world enacted measures combating the financial catastrophes caused by the Long Depression.
For instance, British economic policy saw a reduction in tariff rates within its empire to stimulate trade.
In the United States, President Ulysses S. Grant decided against inflating the currency with greenbacks as some Congressmen suggested, fearing rampant inflation. Instead, Grant pursued a tight money policy, avoiding the devaluation of the dollar. This policy was paradoxically a mix of addressing the immediate liquidity crisis while enabling a longer depression to take hold, characterized by widespread business failures and stark unemployment.
By comparison, the approach during the Great Depression of the 1930s was markedly different, especially with the introduction of Keynesian economic policies under President Franklin D. Roosevelt. These policies focused on government intervention and spending to stimulate economic growth, which included extensive economic regulations and social welfare programs under the New Deal.
The Federal Deposit Insurance Corporation (FDIC), the Federal Housing Administration (FHA), and the Social Security Board, now known as the Social Security Administration, were all products of this new economic approach.