This blog is for discussing issues in our complex global economy.
From Carpe Diem:
GDP is how big the U.S. economy is. As you can see, it’s not shrinking anywhere near as much as the great depression.
I think that this graph puts our economy today into perspective. The graph shows me that we are not doing nearly as bad as in the past. At the same time I believe that we cannot over look the situation at hand. Even though we might be doing better than in the past we are not doing well. I think that we need to try to fix the problem now because the longer we wait, the harder it will be to fix. The government is trying to install some confidence in the people by increasing the government spending. I think this could help but it is going to take more of a unified effort by the people. As of right now everyone wants to save money because of the lack of security with their jobs. It seems like every week more and more companies are going out of business or joining together with another company. In the end the government spending may jump start the economy and give the people the confidence and security they need to start spending again.
It’s interesting how the media keeps comparing our situation today with the Great Depression. The graph above clearly shows we are not as bad off as the Great Depression. Graphs are great! By hearing this information day in and day out can put you into a depression. This false information puts people into a panic of not wanting to buy but to save because the future is unknown. The media a powerful tool so should we be living in fear or not? I have not stop spending but I am more conscience on what I purchase.
The way the media has been making this “recession” sound seems to be much worse than it actually is. Now i know things are bad but this graph reassured me that we are no where near close to bieng like the Great Depression. Im not at all saying things are good right now, (stock market is terrible, real estate is terrible and then rising unemployment rate keeps going up which is terrible). something needs to be done fast before our numbers get down or even below what they were during the Great Depression.
I don’t think we will reach the great desperation because now we have different funds like unemployment, social security. Although these people may not get a lot of money they at least have some money for food. Till they find another job. It’s not like back then were if u didn’t have a job u simple just didn’t have any money.
This is very good to see becasue it takes some fear off the citizens in our nation about not wanting to spend. Showing this to the people makes it realize that although it is bad it is not extremely bad. we have had worde
With the way that everyone is talking about the economy and how all the news is saying that everything is so horrible, its good to see just how far away we actually from being at the same level as the great depression. If the news were to talk about something positive for once maybe people would stop completely freaking out about our little hard time and pull right out of it, how know. But it sure would be nice to turn on the news for once and see something like this instead of all the negativity in our world today.
I think that graph is whack. The graph is skewed because this is a global economy it is not 1931 anymore the rich are getting richer witch in turn tips the scale the Rich could just be making a ton of money and the average American could be in worse shape than 1931.
First of all your graph tells a story that you want us to hear. The depression started in about October 1929 and this time October of 2008, based on the stock market crash. You don’t show 1929 and you give us an est. for 2009. First quarter results are official and GDP dropped 5.5% not 1% as your graph suggests. Further more unemployment hit 9% in 1930 and guess what were there. I am very tired of people spreading 1/2 truths and the idiot public eating it up like it is gospel. Wile this might not be 1930 it certainty is not as rosy as you want us to believe!
We may not be at the great depression level, but we are no way doing good, or even ok. our GDP is lowering and lowering, it would be a little refreshing to see it stabilizing at least. I think this is to make people think “hey things aren’t so bad” but I am not going to settle for a less worse economy to live in. I will be happy when things turn around and start to increase, there is not stability or security in what the graph tells us so there is no relief of worry in my opinion.
After visiting BEA’s website and doing some calculation myself, I noticed the same thing as the graph does. It feels very strong to us because we see a lot of people struggling with their work, mortgage and credit card bills, but the numbers tell and the graph tell me a different story. We definitely have a lot more pupulation than it had in the 30s and the economy right now is a lot more diverse than it was in the 30s.
I agree with T “I think that graph is whack. The graph is skewed because this is a global economy it is not 1931 . . .”
Read Mish’s, Bob Chapman or Peter Schiff
Trying to compare such a complex situation with such a simple graph, aaaaah I don’t think so
good try though
But you have to remember, we have put new policies into play so that we don’t hit bottom like we did during the Great Depression. FDIC Insured banks is a great example of why (fortunately) we haven’t hit bottom like we did then. Can you imagine if everyone that had their money tied up in all of these banks that have gone belly-up lost all of their money? We would be in a much bigger predicament, probably similar to the 1930s.
Google is in the tank for Obama. Everyone knows this..
A quick economics lesson for everyone: GDP is composed of 4 parts: (Business Spending)+(Consumer Spending)+(Exports – Imports)+(GOVERNMENT SPENDING). The only reason that the graph above is not completely comparable to the Great Depression is because the Government is spending trillions of dollars at the moment. If that were not the case, the two graphs would be almost exactly the same. Currently the govt is just printing and borrowing the difference. Mark my word; this will make it much worse in the long run.
I think that the graph gives us a really good picture of what the economy looks like as compared to the Great Depression. I never thought that we were even close to as bad as things were back then, but I know I always hear “it hasn’t been this bad since the Great Depression”, but being able to look at this graph it helps me to see that things aren’t nearly as bad as they were, but they still aren’t great, it’s not a good thing that we are still in the negatives as far as GDP goes, but I guess it could be worse.
In response to Matt’s post, I had no idea that the two were even related. It’s really scary that that point can so easily be overlooked. Without the right knowledge we can be tricked into thinking one thing when that really isn’t the case.
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