Monday, March 30, 2009

Perspective on Depression and Recession

The piece entitled “How a Modern Depression Might Look – if the U.S. Gets There” from the March 30 issue of The Wall Street Journal has some good graphs showing how far we off from what happened in 1929-33.

The graphs give you a pretty good idea that to get to that level we’d need to perpetuate the last few months for about 30 to 40 more (a point I’ve made in class more than once).

It also shows that the serious downturn in the statistics for the current recession really doesn’t start until several months after it started (a point I made in class about 3 weeks ago).

The article also has some good interview research with people who lived through the depression. I particularly liked the quote using the word “threadbare”. That’s just not a word that you hear any more because even homeless people’s clothes aren’t threadbare any more.

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