Currently, there has been many articles that explains about the negative effect that the financial crisis has on the economy, resulting recession, but I haven't really seen articles that had a different view on the recession.
In this article, the current U.S. economic recession isescribed as not even close to the Great Depression. According to James Poterba, the president of the National Bureau of Economic Research quoted that"We are in a very differnt place than the U.S. economy as comared to the 1930s, and it is possible to have the worst postwar recession without getting anywhere close to what it was in the 1930s..."
As the unemployment rate projection of 8~9% which is far from how it was during the reat Depression, he emphasized that the current depression may be longer than average but not as serious as how it is discussed in the media currently.
It was interetsing to see different point of view regarding the current recesion as it is one of the major economic concern currently.
2 comments:
I wonder how worse the economy could get. It already seems pretty bad now but they are saying the Great Depression was worse. Thinking that 1 out of 4 people have no job, it must have been terrible.
Just think that we are freaking out now that the unemployment rate is up over 6%. Some of the European countries try to have 10-12% and think that is good. But 25% would be extremely terrible since that would quadruple what it is now.
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