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Recession or Depression?

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Amongst the challenges the global economy faces, the challenge of confidence in the system could be an integral component to a faster turn-around or not.  Calling our recession a full blown depression very well has the affect of prolonging our economic mess.

Jeff Cornwall at the Belmont University Center for Entrepreneurship takes an interesting look at historical data when caring this economic recession to past declines.  Mr. Cornwall uses data (gasp!), not scare tactic reporting that is evident on our national news outlets.  Random case in point – swine flu: over 36,000 people die a year from the regular flu, yet you would never hear the sensational news about that…

Back to the topic.  Cornwall looks at data that defines our current recession more along the lines of a deep recession much like 1981.  You can read more of his thoughts here.  A juicy bit of opinion from Mr. Cornwall:

Recent data not on this graph suggests that the current recession may not go as deep as 1981. There are some indications that it may last longer than 1981, but we still do not know if it will last as long as the 2001 recession. History shows us that deep recessions tend to be shorter (1981) and shallow ones longer (2001).

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Written by Caleb

May 7, 2009 at 12:00 pm

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