Are we in a "Great Depression?"

The British Independent Newspaper has declared the United States into a great depression.

This is their reasoning:

"We knew things were bad on Wall Street, but on Main Street it may be worse. Startling official statistics show that as a new economic recession stalks the United States, a record number of Americans will shortly be depending on food stamps just to feed themselves and their families."

They refute themselves here:

"The increase – from 26.5 million in 2007 – is due partly to recent efforts to increase public awareness of the programme and also a switch from paper coupons to electronic debit cards."

This reminds me of the West Wing episode, where they found new poor people by changing the way the poverty rate was calculated. There actually aren’t more poor people just new people counted as poor.

The rest of the article is here.

We are definately heading in a recession that seem more severe than the last. This is causing the "Conservative" government under Bush and the "Liberal" Democrat Congress to believe that they need to take more control of the economy.

I personally believe that a "New Deal" type approach is actually more of a threat to send us in a "Great Depression" than just letting the situation pan out.

I have learned if you want to be a famous Economist you must have your own laws. My new law that many Economist don’t seem to jump on that I truly believe is that people have a natural tendency to want to believe they can control every situation. I will call this Williams’ First Law, even though Walter Williams may have his own.

This law is important because it explains why even the most Conservative Republican and Capitalist Libertarians will be heard saying, "Well, Communist was good theory but it didn’t work." Like Dr. Peter Boettke said that this was false it actually worked better in practice because they had to introduce markets.

Published in: on April 2, 2008 at 5:33 am  Leave a Comment  

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