Accounting for the Great Recession

An article by a writer for the Federal Reserve Bank of Minneapolis.

As this has truly been one of the toughest recessions in recent memory, I am happy that the academic community is begininng to publish more about it. I’m so very tired of the vested interest-types who are going around either like Cassandras, or pushing their right-winger 19th century discredited economic theories and philosophies.

What some of these recent reports are showing are things that we who’ve been hit hard by the recession know in our guts. In particular, the Minneapolis piece is emphasizing the effect of the financial crisis on deepening the recession, and also that the move to conserve cash meant that a significant slice of the workforce was going to be “dislocated” out of jobs. Rather than hire, compaanies conserve cash (when they aren’t sneakily shipping our jobs off to the Third World).

Reasoned analysis and decision making beats the vendetta from the shotgun every time, which is where the Tea Party types and the greedy billionaires seem to be driving public policy. So good to see that more people with jobs are saying that there were unique conditions that created the employment disaster that so many Americans face.