A great little story about the recovery that wasn’t–and the lies

I keep saying the recovery ain’t–in fact we are still in a long and troublesome recession, with unemployment well into the double digits and the work force declining.

Sometimes a little story and some play on words and ideas helps to alert the inquisitive.



One response to “A great little story about the recovery that wasn’t–and the lies

  1. Indeed you could even argue that the United States has been in a sort of rolling recession since at least the mid-seventies, with the results masked with hedonic numbers, changing definitions, and ever increasing debt obligations both public and private.

    When during a conversation someone claimed that the “Economy was booming,” I countered by suggesting that he merely go drive around and see things with his own eyes, notice all the vacant storefronts , look for the new factories whilst taking note of the ones that were shuttered. That made him pause and think, and that was over 20 years ago. I’d say that it has gotten worse since then.

    Most of these financial games are done in order to prop thing up and avoid a depression. But a depression isn’t necessarily a bad thing. As Bill Bonner points out repeatedly, it clears away all the dead wood, the companies that ought to fail, the stale debts, and allows a fresh start. As he sums things up, the cure for a depression is a depression.

    What you’re seeing is a delaying of the inevitable. Like removing a band aid, you can do it slowly and prolong the agony, or you can just rip the thing off and get it over with.

    (The depression in the early 20s was allowed to happen, and it was over in a few months. By contrast, the Great Depression was prolonged by Government intervention, in part leading to participation in WWII.)

    Just a thought.


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