February 19, 2009

Worst economy since the Great Depression?

If anyone ever says to you that this is the worst economy since the Great Depression, please refer them to this post on Carpe Diem. It's a great blog if you are interested in economics.

This graph captures the main indicators of the early 80's recession versus today.

Just for way of comparison, in the Great Depression, unemployment peaked at 25%, inflation peaked at 10%, and the prime interest rate was cut from 6% to 4% in 1930.

The early 1980's were the worst economic period since the Great Depression - today doesn't even come close. There is no 'fierce urgency of now' for this ill-defined, hodge-podge of a rescue package, now passed into law. This economic siege mentality is a result of an extended period of decades of merely minor recessions and extended periods of growth.

Don't let the doomsayers fool you.

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