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http://online.wsj.com/video/capital-was-the-recession-really-that-great/FD33CED3-C232-47DD-A7F0-C9BAA4E17F17.html
I think that it is funny that there is so much debate over this topic but I am interested to see what you guys think. Do you think that the most recent financial crisis deserves to be termed the "Great Recession" with respect to previous financial crashes in our history.
Personally since this is the only financial crisis that I have really experienced I would agree that this is "The Great Recession". Although it may line up empirically to some previous financial recessions, in my opinion the most recent financial crash seemed to challenge the fundamentals in the field more than those of the past. Given the impact on our domestic and foreign markets along with the economic adversity that we have had to witness in Michigan, this is low point in history deserves the term "The Great Recession". What do you guys think ?
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I agree on some points, yet I disagree on others. I mean sometimes I agree and think that it is. It compares statistically with The Great Depression, and we really have had to throw out major economic theories because we see that they don't pan out.
ReplyDeleteOn the other hand, Michigan was hit pretty hard and yet people are still surviving. I feel like the consumers in The Great Depression had a much harder time coping than consumers do today.
While there have been fundamental changes, how much of that do we attribute to the recession? I feel there were other circumstances that were going to cause a bit of a downturn anyway, but it just so happened that a bunch of things happened around the same time.
ReplyDeleteSpeaking about Michigan itself, I think we would have been feeling a lot of pain anyway because there was no way for the "Big Three" to continue to sustain themselves against increased global competition. Employment in Michigan was going to spike anyway.
With the factors put together, this was certainly a major economic event, but I'm not sure it deserves to be called the Great Recession.
As far as Michigan goes, I'd have to agree with Noah's statement on the "Big Three." This recession just helped speed up the process of the competition taking a much larger market share than what we had been used to seeing. As far as what to label this recession it seems unfair to label it THE Great Recession, but I would have to agree that it has definitely taken its place as one of the worst financial and economic meltdowns in the history of the US.
ReplyDeleteI agree that this has seemed like the worst recession we have had in a long time but a lot of them seem to be the worst at the time. I think that we will look back at this time and probably deem it to be the great recession or something. It is just a newer version of the "Great Depression".
ReplyDeleteThroughout history people have tended to overreact to whatever was most recent and freshest in their memory. In the coming generations this recession will be dissected in many ways with all sorts of data and explanations taken into account. I would hesitate to make any claim of its "historical magnitude" until we have a much better understanding of what exactly happened.
ReplyDeleteI think this can be considered the "Great Recession" because of how it has affected our economy as well as how it surfaced many flaws in private and political sectors. The topic of fraud discussed in last class has been a large reason as to why we are living in such a difficult time period. This recession is not only statistically one of the worst, but it exposed many weaknesses and problems with companies that used to be the backbone of our economy. I agree that the Big Three played the largest role in hurting the Michigan economy. When they failed, it hurt the thousands of auto-part suppliers, dealerships and construction companies that build their facilities. The problems of the Big Three went downstream and is the reason for the high level of unemployment.
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