It was pointed out (I lost the blog reference) that it’s, um, ‘interesting’ that Becker, a Nobel Laureat economics professor, didn’t notice little things like the fact that interest rates were effectively at 0% already, and that the inflation rate was nowhere near 1981-82 levels. If I didn’t know that Chicago professors would *never* be dishon- sorry, won’t go there.

Also, from my casual pop economic history of the 1981-2 recession, it was a very deliberately contrived recession by Volcker. He turned the real prime rate up to ~8% to crush inflation by crushing the economy. This left him a vast maneuvering area to reduce rates once the economy was beaten into submission.

In addition, bloggers with actual econ degrees have pointed out that the current recession was a financial-driven recession, unlike most (or all?) post-New Deal recessions.

Somebody pointed out that in construction, a large number of formerly unionized skilled tradespeople who would formerly be employee are now ‘contractors’ (i.e., Joe and his truck and tools). When they don’t have work, they are not ‘unemployed’.

I do expect a second Great Depression to be less bad, for the simple reason that we’re a richer economy. Just as I imagine that life in the Great Depression was better than life during the first Great Depression (the Panic of 1873-79)