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Page added on May 26, 2016
Worst Economy Since the Great Depression
Many economic indicators are at their worst since the Great Depression …
For example, we noted in 2009 that more Americans will be unemployed than during the Great Depression.
We noted in 2010:
The following experts have – at some point during the last 2 years – said that the economic crisis could be worse than the Great Depression:
- Fed Chairman Ben Bernanke (and see this)
- Former Fed Chairman Alan Greenspan (and see this and this)
- Former Fed Chairman Paul Volcker
- Economics scholar and former Federal Reserve Governor Frederic Mishkin
- The head of the Bank of England Mervyn King
- Nobel prize winning economist Joseph Stiglitz
- Nobel prize winning economist Paul Krugman
- Former Goldman Sachs chairman John Whitehead
- Economics professors Barry Eichengreen and and Kevin H. O’Rourke (updated here)
- Investment advisor, risk expert and “Black Swan” author Nassim Nicholas Taleb
- Well-known PhD economist Marc Faber
- Morgan Stanley’s UK equity strategist Graham Secker
- Former chief credit officer at Fannie Mae Edward J. Pinto
- Billionaire investor George Soros
- Senior British minister Ed Balls
We explained in 2011 that many economists agree we’re in a depression … and they only argue about whether we’re facing the “Great” depression of the 1930s or the “Long” depression of the 1870s. We also noted that housing prices fell farther than during the Great Depression.
In 2012, we wrote:
We’ve repeatedly pointed out that there are many indicators which show that the last 5 years have been worse than the Great Depression of the 1930s, including:
- The housing slump
- The level of inequality between rich and poor (too much inequality destroys economies)
- The interconnectedness of financial systems and economies worldwide (interconnectedness leads to financial instability)
- Runaway spending and greed
***
Indeed, the number of Americans relying on government assistance to obtain basic food may be higher now that during the Great Depression. The only reason we don’t see “soup lines” like we did in the 30s is because of the massive food stamp program.
We noted in 2013 that the British economy is worse than during the Great Depression, and more Americans are committing suicide than during the Great Depression.
We pointed out in 2014 that Europe is stuck in an economic malaise worse than a depression, and cited charts showing that Europe’s GDP is recovering much slower than after the Great Depression:
We also noted that Americans fared better after the Great Depression than the 2008 crisis and that U.S. foreclosure rates are comparable to the Great Depression.
Last year, we noted that an important economic indicator – the velocity of money – has crashed far worse than during the Great Depression, and that the howling winds of deflation are hammering the U.S. just as much as Europe.
We noted that last year was the first pre-election year stock market loss since the Great Depression.
In January, we pointed out that a prominent economist said:
Future economic historians may not call the period that began in 2007 the “Greatest Depression.” But as of now, it is highly and increasingly probable that they will call it the “Longest Depression.”
In March, the Federal Reserve Bank of St. Louis noted that – as with Europe – America’s GDP is recovering much slower than after the Great Depression:
And Pew reports:
More young adults in the U.S. are living with their parents than at any time since around 1940, according to a new Pew Research Center analysis of census data.
Across the European Union’s 28 member nations, nearly half (48.1%) of 18- to 34-year-olds were living with their parents in 2014 ….
***
Similar long-term trends have been observed elsewhere. Canada’s most recent census, in 2011, found that 42.3% of adults ages 20 to 29 lived in their parents’ homes, up from 32.1% in 1991 and 26.9% in 1981. In Australia, about 29% of 18- to 34-year-olds were living with one or both of their parents (but without a partner or child) in 2011, up from 21% in 1976. And in Japan, the share of 20- to 34-year-olds living with their parents grew from 29.5% in 1980 to 48.9% in 2012.
Heck of a job …
22 Comments on "Worst Economy Since the Great Depression"
Hello on Thu, 26th May 2016 6:49 am
>>> More young adults in the are living with their parents ….
He makes it sound like it’s a bad thing.
Go Speed Racer on Thu, 26th May 2016 6:54 am
It’s a harmonious symbiotic relation.
The lovely little 25 year old ‘children’
watch Beevis and Butthead on the TV all day.
They grow pot plants in parent’s basement,
and smoke it.
They play videogames all day, and
text on their phones.
And the parents let them. Beautiful.
Everything is the perfect circle,
the Yin and Yang, the true harmony.
onlooker on Thu, 26th May 2016 7:13 am
“and they only argue about whether we’re facing the “Great” depression of the 1930s or the “Long” depression of the 1870s
Greatest Depression.” But as of now, it is highly and increasingly probable that they will call it the “Longest Depression.”” Good adjective but not quite how about “The never ending Greatest Depression”. Maybe I can work an an Economist haha.
makati1 on Thu, 26th May 2016 7:49 am
This is one we will NOT recover from, no matter what it is called. Not that there is likely to be anyone around to call it anything by 2100. Certainly whatever life forms still exist, they won’t even know or care about the last gasp of homo sapiens.
But we will leave a lot of oily plastic junk around to pollute the planet for the next few hundred years. By then, only things like the pyramids and maybe Stonehenge will still be visible. And in a million years even they will be gone. No sign that the intelligent ape ever existed.
JuanP on Thu, 26th May 2016 7:53 am
Oil hits $50. https://www.rt.com/business/344425-oil-prices-rise-50/
PracticalMaina on Thu, 26th May 2016 7:55 am
Go Speeed Racer, how old are you? Old enough you will see social security? Or finish your life with some ice on the planet? Better sitting in a basement smoking pot than like the old days, drunk on whiskey in a muscle car…..yeeehaaaa
Apneaman on Thu, 26th May 2016 10:55 am
Hello, I don’t necessarily think families staying together is a bad thing, it is the historical norm, but it is an indicator that the econ 101 narrative, in the wealthiest countries, is bullshit.
In the U.S. and abroad, more young adults are living with their parents
http://www.pewresearch.org/fact-tank/2016/05/24/in-the-u-s-and-abroad-more-young-adults-are-living-with-their-parents/
eugene on Thu, 26th May 2016 11:04 am
The reality is this is the economy they have to learn to live in. There are many reasons “kids” are living at home. Everything from it’s too comfortable, too many perks, I screwed around and didn’t get a skill/education, they can’t read/write well enough to fill out a job application to legitimate life events. I read a “too much student loan debt” the other day. Degree was in recreation/leisure activities. Granddaughter/husband borrowed 5000 from student loan and went on vacation. I remember watching friends used student money to go skiing, spring vacation, buy a car, etc. Do all do this? No! But we must keep in mind it’s a mixed bag.
Is the economy bad? Yep!! Now what? It’s not going to get any better. We have aging children who grew up in plenty. Reality is a son of a bitch and doesn’t care whether you live or die.
Apneaman on Thu, 26th May 2016 11:08 am
Fossil fuel externalities mounting. No worries, the cancer won’t stop until all the grand-kids are dead.
Wildfires will hurt economic growth: BoC
Bank of Canada keeps interest rate kept at 0.5%
http://www.torontosun.com/2016/05/25/wildfires-will-hurt-economic-growth-boc
Outcast_Searcher on Thu, 26th May 2016 12:04 pm
Economic growth is NOT “depression”.
But since when such clowns care about the truth?
Lies, damn lies, and (twisting) statistics.
Yawn.
Apneaman on Thu, 26th May 2016 12:27 pm
Outcast, why don’t you explain yourself in detail? Lay out a case for these lies……untwist the stats and expose the clowns. Demonstrate how awesome things are out there for the average joe instead of just making the same old boring (yawn) unsubstantiated claims (yawn).
Davy on Thu, 26th May 2016 12:44 pm
Articles like this are as bad as those that go to the other extreme touting wonderful growth. It depends on where you are at and who you are that determines if you are in growth or depression. We are in a time of great upheaval in which growth is stalling and wealth is being transferred to different economic sectors and classes.
We are not yet in a full blown across the board depression. We are setting ourselves up for one by destroying demand and supply with wreckless economic policies and actions. The depression is coming but we still have some more stupid to waste.
Apneaman on Thu, 26th May 2016 12:44 pm
“1. Capitalists Without Borders
Should the Middle Class Fear the World’s Poor? (Marshall Steinbaum, Boston Review, May 11, 2016)
And I quote— “Capital mobility—not competition with the world’s poor—is the greatest threat to the working class in rich countries.” Right. Capitalist Elites Want Cheap Labor. Now they can play off the workers of any nation (including the U.S.) against the workers of all the others.”
http://www.declineoftheempire.com/2016/05/stuff-im-reading-new-normal.html
Apneaman on Thu, 26th May 2016 12:52 pm
World Poverty Statistics
Total Percentage of World Population that lives on less than $2.50 a day 50%
Total number of people that live on less than $2.50 a day 3 Billion
Total Percentage of People that live on less than $10 a day 80%
Total percent of World Populations that live where income differentials are widening 80%
Total Percentage of World Income the richest 20% account for 75%
Total Number of children that die each day due to Poverty 22,000
Total Number of People in Developing Countries with Inadequate Access to Water 1.1 billion
Total Number of School Days lost to
Water Related Illness 443 million school days
Child World Poverty Statistics
Number of children in the world 2.2 billion
Number of Children that live in Poverty 1 billion
Total Number of Children that live without adequate shelter 640 million (1 in 3)
Total Number of Children without access to safe water 400 million (1 in 5)
Total Number of Children with no access to Health Services 270 million (1 in 7)
Total Number of Children who die annually from lack of access to safe drinking water and adequate sanitation 1.4 million
http://www.statisticbrain.com/world-poverty-statistics/
Apneaman on Thu, 26th May 2016 12:58 pm
The richest 1% own more than 99% of world’s population
http://www.euronews.com/2016/01/18/the-richest-1-percent-own-more-than-99-percent-of-world-s-population/
Capitalism is awesome – for a happy few.
Enjoy your undeserved benefits while you still can cause they are coming for your shit next. It’s the logical conclusion of canabial Capitalism, as predicted.
Davy on Thu, 26th May 2016 1:16 pm
Trump wants to revive the energy boom. He probably wants keep gas prices low. Yea and the EPA has to go.
“Donald Trump Unveils Energy Plan – Live Feed”
http://www.zerohedge.com/news/2016-05-26/donald-trump-unveils-energy-plan-live-feed
“Donald Trump will head to the heart of America’s oil and gas boom on Thursday to unveil details of his policies on energy and the environment. As NYTimes reports, speaking at an oil industry conference in Bismarck, N.D., Mr. Trump is expected to embrace standard Republican calls for more fossil fuel drilling and fewer environmental regulations, while possibly elaborating on his positions on climate change. Having vowed to “get those miners back to work,” and “get rid of [EPA] in almost every form,” this is the first time since becoming the presumptive nominee that Presidential candidate Trump has a platform for a policy speech… we are sure Clintonites will be listening intently.”
penury on Thu, 26th May 2016 1:41 pm
What is the old saying? Your neighbor loses his job, that is a recession, you lose your job that is a depression. We have a lot of depression in the world.
Anonymous on Thu, 26th May 2016 2:24 pm
americants just cant let go of this almost child-like belief that something called the ‘president’ makes policy, much less, energy policy, in the uS empire. The only thing the ‘trumpster’, or Shillary if your prefer, get to decide is, is to select from list of energy-rich nations the pentagon and CIA have decided qualify for a made-in-the-USA humanitarian intervention.
Plantagenet on Thu, 26th May 2016 4:34 pm
Obama says the US economy is doing great Hillary says the US economy is doing great. That should settle the matter.
Cheers
Dredd on Thu, 26th May 2016 4:57 pm
It is the wars stupid (Too Big To Stop Killing – The War Class – 2).
peakyeast on Sat, 28th May 2016 2:55 am
It is about time the elites stop hiding that rich resourceful place inside the hollow earth.
We need to make that clear now! And demand access to earth v2.
I have heard that the entrance to the inside is somewhere on one of the poles. To be sure that we succeed I advice everybody to set up demonstrations for access at BOTH poles.
Eventually they will have to give in and start sharing.
String900 on Sat, 28th May 2016 6:15 pm
More Republican Horse Shit.
I think you’ll find it interesting that JPMorgan is telling it’s top clients Obama has had 7 YEARS of Job Growth, and Democratic Presidents OUTPERFORM Republican in Stock Market Returns and GDP Growth.
https://am.jpmorgan.com/blob-gim/1383280028969/83456/jp-littlebook.pdf
The Big Money Knows Fox is Horseshit for the masses.