Very interesting comparison of Great Depression and Great Recession.
Cheryl Russel’s work is always some of the most insightful I read. After you read through this you will want to sign up for her newsletter. and buy her books.
Score One for the Great Recession
How do you measure bad times? Specifically, how does the Great Recession compare with the Great Depression? Economists typically use GDP as the measuring stick. During the Great Depression, GDP fell by a stunning 27 percent. During the Great Recession, GDP fell only 4 percent. Using the GDP measure, then, the Great Recession was only 15 percent as severe as the Great Depression (4/27 x 100 = 15).
Something is missing from the GDP comparison, however: a human face. GDP and other macro-level economic statistics fail to capture the human experience of hard times. We need something that measures the personal dimension of economic downturns. One way to measure the personal is with…
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