The depression is not “coming.” It is already here, Remember the classic one was not a continuous downturn. It was a series of recessions and anemic recoveries. It was proclaimed to be ended several times and did not really end until the 50s boom when the soldiers were all added back into thêconomy and Ike got most of the economic repressions of the New Deal lifted. During the war years we had a full-employment depression but people were no better off materially. All that production was being blown up as fast as it was produced and wages were frozen at near third world levels. Outside of the war years unemployment was up and downish. Unemployment now, if figured the way it was then, is comparable to that in the 30s.
I agree with you 100%. It is a matter of semantics. The elites and the press are talking about recovery as we slip further into the depression.
The depression is not “coming.” It is already here
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I suspect you are right but it’s hard to find “experts” that say it. I suspect most of them are afraid to admit it lest they harm themselves.
This recession has felt so much different than the others I have experienced in my middle aged life. I take different routes home and pay attention to businesses that are closing and my area is doing better than most. I see many businesses that have to be really hurting and probably will close given what the next few years or decades look like.
At some point it seems like the cascade effect will happen and many many more people will be out of work. I am not an economists but I recognize that Wall Street and our leaders are living in a different world than the rest of us.
The actions of the Fed are very dangerous in an economy dependent on consumer spending. The more people cut out non-essential spending the more businesses will borrow to stay afloat before inevitably closing their doors and laying off workers. The cascade effect has probably already started and we still have plenty of structural problems with debt, public pensions, entitlements, and the health of our currency.
It feels like our leaders live in a different reality than I do if they think we can borrow our way to prosperity. I have feared all along that the Fed and our gov’t would monetize our debt to benefit themselves.
It is depressing to think about but thanks for an excellent post. I need to read more about the Great Depression and encourage everyone else to prepare the best they can.