Recession? Try the `D' word instead
By Richard Gwyn
"It's time overdue for political leaders and economic experts and the rest to stop saying that we're either already in a recession or are about to slide into one.
"The truth, instead, is that we're either already in a depression or are about to tumble into one.
"No one wants to say this. It's a kind of economic correctness, a superstitious fear that saying the dreaded word will bring the horror on. The reason for this fear is that people always only have in mind the terrible Great Depression of the 1930s.
"There've been other depressions, though. One late in the 19th century, although never as deep or vicious, lasted for close to a quarter-century.
"A depression is simply a bad and prolonged recession or economic downturn, almost always preceded by wild speculation and excessive consumption.
"It's a built-in characteristic of capitalism, as Karl Marx understood very well. It's also a built-in characteristic of human nature, something that Marx didn't understand at all.
"Semantics isn't the reason for using the word 'depression' rather than 'recession.' The technical definitions of both terms are arbitrary anyway.
"The reason is intellectual and political honesty.
"We need to understand, and for this to happen we need to be told by leaders whom we trust that things may stay bad for quite a while, and that at times things may get very bad indeed.
"We need also to understand, and by doing so gain the confidence to cut our leaders some slack, that the various cures now being attempted may well turn out to be the wrong ones, with other approaches having to be substituted. This is to say that tensions and arguments and disappointments are inevitable.
"We need to understand, lastly, that almost no one understands what's now going on.
"That may seem like a wild, alarmist statement. It isn't. Try to think of a single person who predicted accurately what now is happening.
"Everyone, from President-elect Barack Obama on down, is really groping their way along ..."
Source
Categories: recession
"It's time overdue for political leaders and economic experts and the rest to stop saying that we're either already in a recession or are about to slide into one.
"The truth, instead, is that we're either already in a depression or are about to tumble into one.
"No one wants to say this. It's a kind of economic correctness, a superstitious fear that saying the dreaded word will bring the horror on. The reason for this fear is that people always only have in mind the terrible Great Depression of the 1930s.
"There've been other depressions, though. One late in the 19th century, although never as deep or vicious, lasted for close to a quarter-century.
"A depression is simply a bad and prolonged recession or economic downturn, almost always preceded by wild speculation and excessive consumption.
"It's a built-in characteristic of capitalism, as Karl Marx understood very well. It's also a built-in characteristic of human nature, something that Marx didn't understand at all.
"Semantics isn't the reason for using the word 'depression' rather than 'recession.' The technical definitions of both terms are arbitrary anyway.
"The reason is intellectual and political honesty.
"We need to understand, and for this to happen we need to be told by leaders whom we trust that things may stay bad for quite a while, and that at times things may get very bad indeed.
"We need also to understand, and by doing so gain the confidence to cut our leaders some slack, that the various cures now being attempted may well turn out to be the wrong ones, with other approaches having to be substituted. This is to say that tensions and arguments and disappointments are inevitable.
"We need to understand, lastly, that almost no one understands what's now going on.
"That may seem like a wild, alarmist statement. It isn't. Try to think of a single person who predicted accurately what now is happening.
"Everyone, from President-elect Barack Obama on down, is really groping their way along ..."
Source
Categories: recession
0 Comments:
Post a Comment
<< Home