Hello Everyone,

In January, I wrote an Obamagram entitled “Another Great Depression?” In it, I wrote,

…I am frustrated these days as commentators and politicians far and wide ominously liken the current credit crisis to the Great Depression…Not so fast. It isn’t that simple. Or that scary. I surely won’t pretend to know where we are headed, and I don’t mean to diminish the seriousness of our situation. But, I do think we need to be reticent to cry “the sky is falling”.

On Monday, the New York Times published the attached chart depicting our country’s production capacity utilization over the last century – a good indication of economic activity. Although the Times used this chart to argue that the recovery from this recession is likely to be slow (something that’s actually unknowable), I think it makes the point better than my words in January could. This recession is no Great Depression.

The current recession is best compared to the 1981-82 recession – even though that one was much more severe than what we’ve seen so far in this one. In fact, the current one looks similar to a number of them since World War II. But, most importantly, this one pales by comparison to the Great Depression – or even the two recessions that preceded it.

Point made.

Please pass it along.

Chuck

adobe pdf file Click here to download this article in PDF format.

 

adobe pdf file Attachment: NYT Graph

 

adobe pdf file Attachment: Economy Falling Years Behind Full Speed

 

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