SYNDICATED COLUMN: Party Like It’s 1929
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High Unemployment and High Inflation Make This Recession Different “Why is this recession different from almost all other recessions?” asked Herbert Barchoff. The economist, a former president of the Council of Economic Advisers, answered his own question: “This is not only the usual cyclical recession, but also a structural recession.” Barchoff’s dark assessment appeared in a letter to the editor of The New York Times–in June 1992. Then, like now, Americans were suffering through a long, grinding recession following a boom (under Reagan) that had primarily benefited the wealthy. There were mass layoffs. The real estate market had collapsed. Foreclosures were rampant. George H.W. Bush, who had expected to coast to reelection on the strength of his near 90 percent post-Gulf War approval ratings, projected a Herbert Hoover-like resolve to not lift a finger to alleviate the misery. The Federal Reserve cut interest rates, but it didn’t help. Six months later, angry voters fired an out-of-touch president who seemed unwilling…
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