Quote:
Originally Posted by roachboy
ace--i would think that you fancy yourself in the position to answer that, given that you've been trying to argue here and elsewhere that there's nothing curious or extraordinary happening at present---which transposes (and nothing else) the claim "the fundamentals of the economy are strong"---whatever that means---which implies that everything is normal, yes?
so you tell us what's normal.
|
Some characteristics of a "normal recession" includes:
Contracting employment.
Increased unemployment.
Decline in demand for goods and services.
Decline in Corporate profits.
Decline in consumer confidence.
Decreased capital investment.
Increasing inventories.
Price discounting to reduce inventories.
Lower inflation or possible deflation.
Increased government borrowing.
Falling demand for imports.
So given we are in a recession, the question becomes how do the numbers for this recession compare to historical norms. I think those saying that this recession is abnormal have an obligation to show what they mean by the statement. Without being too simplistic I would think if those who really believe our current recession is abnormal, they would be calling it a depression. I would think by definition that would be true.
What I really think is that we have had strong economic growth over the past several decades with relatively short minor recessions here and there and we forgot or never knew (for the younglings) what a normal recession feels like.