Dec 16, 2008
Myth: Welcome to the Great Depression - Part II
According to the Business and Media Institute, in the first half of 2008 there were 70 stories on ABC, NBC, and CBS that compared our current economy to the Great Depression. And between July 1, and October 27, of this year, another 157 similar comparisons were made.
Category: Economy
Posted by: admin
According to the Business and Media Institute, in the first half of 2008 there were 70 stories on ABC, NBC, and CBS that compared our current economy to the Great Depression. And between July 1, and October 27, of this year, another 157 similar comparisons were made.
(http://businessandmedia.org/specialreports/2008/GreatDepression/GreatDepression_execsum.asp)
Are we close to a depression? No. Is it irresponsible to report our current situation as such? Probably.
Let's look some highlights from data that came from the October 2008 issue of Schwab Investing Insights®, a monthly publication for Schwab clients.(http://www.schwab.com/public/schwab/research_strategies/market_insight/todays_market/recent_commentary/depression_fears_overblown.html)
From high to low, industrial production SHRANK 52%. The GDP LOST 27%. This was during the Depression. Today, our GDP has GAINED 1% and industrial production LOST 2%.
Someone, please tell me with a straight face, how these are similar.
Need more? Unemployment during the depression stood at 25%, four times higher than the 6% today. On a side note, Obama while campaigning, kept pounding on the failures of the Bush economic policies. Until the Democrats took control after the 2006 elections, the only place sign of failure was in the words and stories of the MSM. But I digress.
Exports dropped 66% during the Depression and today are UP 15%. Global trade is a two way street. Limit one and the chances are good that the other is limited as well.
The phrase “not since the Great Depression” may be true one day. But that day is not now.
(http://businessandmedia.org/specialreports/2008/GreatDepression/GreatDepression_execsum.asp)
Are we close to a depression? No. Is it irresponsible to report our current situation as such? Probably.
Let's look some highlights from data that came from the October 2008 issue of Schwab Investing Insights®, a monthly publication for Schwab clients.(http://www.schwab.com/public/schwab/research_strategies/market_insight/todays_market/recent_commentary/depression_fears_overblown.html)
From high to low, industrial production SHRANK 52%. The GDP LOST 27%. This was during the Depression. Today, our GDP has GAINED 1% and industrial production LOST 2%.
Someone, please tell me with a straight face, how these are similar.
Need more? Unemployment during the depression stood at 25%, four times higher than the 6% today. On a side note, Obama while campaigning, kept pounding on the failures of the Bush economic policies. Until the Democrats took control after the 2006 elections, the only place sign of failure was in the words and stories of the MSM. But I digress.
Exports dropped 66% during the Depression and today are UP 15%. Global trade is a two way street. Limit one and the chances are good that the other is limited as well.
The phrase “not since the Great Depression” may be true one day. But that day is not now.