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how about we see how this goes before we declare it healed? The government borrowing massively to keep the government sector expanding and is paying people to
by stretchwithme 17y ago
how about we see how this goes before we declare it healed?
The government borrowing massively to keep the government sector expanding and is paying people to consume in an effort to convince everybody that things are recovering.
This is not sustainable and only worsens our situation. One day, we must face up to our debts. We'll be very lucky if interest rates aren't jacked up on us.
And, as in Japan, it seems they want to keep the zombie banks alive and avoid acknowledging the extent of the problems.
- pw0ncakes 17y agoI'm not ready to "declare it healed", but the probability that our depression becomes anywhere near as severe as the 1930s Great Depression is very low. It has created a lot of suffering, and will likely cause a lot more, and we may not get out of it until the 2020s, but I don't see it as likely that people will starve in this country, nor do I see widespread bank failures as likely.
- vlod 17y agoAgreed. People still seem to have enough money to fill up and drive their huge SUV. When they trade them for Camrys is when I pull my money from the banks.
- codexon 17y agoWe will never see another depression driving down living standards to the level of the 1930s due to technology. But a relatively similar percentage reduction? Quite likely. I would say that this depression looks quite similar to the beginning of the great depression when you consider unemployment percentages and debt as a percent of GDP.