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> Its burned into me to expect the economy to take a big hit every 6-8 years. Good, because that's how it usually is. The 80s and 90s were remarkable for their
by jackcosgrove 10y ago
> Its burned into me to expect the economy to take a big hit every 6-8 years.
Good, because that's how it usually is. The 80s and 90s were remarkable for their economic growth and lack of recessions. The business cycle is about 6-8 years.
Our parents had to get mortgages when interest rates were 17%.
Our grandparents grew up during the great depression, and worked when marginal tax rates were north of 50%.
Every generation has something to contend with.
- taurath 10y agoNo worries, we'll deal with it. A simple admission that there ARE hard problems that millennials have to face is all I generally ask for when people call us lazy, entitled and stupid. Its been very difficult to find economics of just living that make sense even during this current boom period. Its gonna suck REALLY hard when a bust happens, and you can bet a lot of existing institutions are gonna have to change.
- ianai 10y agoIt's funny how you throw that number out, 6-8 years. There is no natural assurance within the economy that the bad times will end. The lows do not have to bottom out. That was the lesson of 1929.
- burfog 10y agoNo, the lesson is to not block recovery via laws passed to satisfy the political need to "do something, anything!". See "Economics: Public and Private Choice" by Gwartney, Stroup, Sobel, MacPherson. The part you want is "Lessons from the Great Depression", which is Special Topic #6 in the 14th edition. It's pretty damning. We responded by restricting trade, creating cartels, destroying food, and so many other self-destructive things.