Carmine Villani: Is this recession so bad?
Why are we not being told the truth? I have read the Summit Daily for 14 years now, and we live in a place where differing opinions can be heard. Truly, we are not even close to the hardships of the Great Depression, yet our political leaders tell us we are, every day. Here are some historical truths:During the Depression years from 1929-34 9,812 banks failed; in 1987-88 we lost about 3,000 banks during the S&Lcrisis. Currently about two dozen banks have failed. Today unemployment is a grim statistic, and we have lost about 2.2 percent of the work force (3.4 million jobs) we all know some of these folks. This translates into an unemployment rate of 7.6 percent. The Great Depression saw an unemployment rate of 25.2 percent during the peak depression year of 1932. These two numbers just do not compare. Lets look at the auto industry: Last year the industry shrunk by about 25 percent. In 1932 the auto industry shrunk by 90 percent. The GDP actually rose slightly in 2008 despite a drop in the fourth quarter. 2009 is expected to drop by 2 percent. In 1930 the GDP fell 9 percent, in 1931 the GDP fell 8 percent, and in 1932 the GDP fell by 13 percent.Another fact of interest is in 1930 the stock market value declined by 90 percent. Today the stock market has shed just under 50 percent of value. At look at the 1981-82 recession will show figures consistent with todays numbers.Again my question is two part: Why is our current administration not comparing todays recession (2008-09) to a similar recession (1981-82), and why is the media not bringing this policy of fearmongering to the carpet and demand the truth be told?Even past President Clinton this past week has questioned the value of current administration position.
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