Go read this book and get back to me.As usual you miss it. The trend is that government is doing more and more when each recession hits. This prolongs the recession and makes the next recovery weaker. Which is exactly what we've seen.Yea yea. The slowest recovery ever and the left don't know the reason why, 8 years?
The Great Recession was the deepest recession this country has gone through since the Great Depression.
Below is a chart that should help people visualize the depth of this recession versus other recessions.
People should note that America's last three recessions, were the three longest recessions. The 1990 recession is the third longest since 1948 and the 2001 the second longest. Yet four earlier recessions where more profound but lasted a shorter time period than the 2001 recession.
It's easy to see there is a trend here. Recessions are lasting longer.
I also added a chart showing the flat wage trend dating back to the early eighties. In constant dollars, the average hourly wage earner is making less than in the 1970s'
Is it possible that over 30 years of flat wages have played into why our recessions have lasted longer, considering we have a consumer spending driven economy?
If that's the case, you should easily find documentation to back yourself up.
I offered up a theory that's based on a coincidence or is it a coincidence?
It seems Forbes and other publication certainly believe that the lack of consumer spending extended the recession. Also, long-term flat wages do shrink expendable income.
Consumer Spending: Another Drag On The Economy
Consumer Spending Another Drag On The Economy - Forbes
The Trouble With Prosperity The Loss of Fear the Rise of Speculation and the Risk to American Savings James Grant 9780812924398 Amazon.com Books