So many write attempting to compare the Great Recession’s recovery to other more “normal” recoveries from “normal” downturns. Those are like comparing the proverbial apples and oranges. The most accurate economic crisis to compare this one to is the Great Depression and its recovery. As a result, other comparisons are simply inaccurate in their conclusions. This article provides an in-depth assessment of the current economic situation and how we may need to rethink how recoveries from severe crises are judged.
With the U.S. economy yielding firmer data, some researchers are beginning to argue that recoveries from financial crises might not be as different from the aftermath of conventional recessions as our analysis suggests.
Their case is unconvincing. It is mystifying that they can make this claim almost five years after the subprime mortgage crisis erupted in the summer of 2007 and against a backdrop of an 8.3 percent unemployment rate (compared with 4.4 percent at the…
View original post 255 more words