The Economy: Something Positive to Consider
Is it just me, or is anyone else feeling overwhelmed by all of the negative reports on the economy? It’s all too depressing, isn’t it?
If you answered YES to the questions above, then you may find some comfort in this article that ran in The Wall Street Journal over the weekend. In it, economist Bradley Shiller argues that the current economy is more like the recession of the early 1980s that that of the Great Depression. All political arguments aside, Mr. Shiller pointed out several comparisons that are worth considering:
Job losses: Current state 2.2% of work force. 1981 2.2% of work force. 1930 4.8%, 1931 6.5%, and 1932 7.1%. The Great Depression had job losses between 2 and 3 times what we are seeing today.
Unemployment: Currently sits at 7.6% and heading in the wrong direction. 1982 peak was 10.8%, where many predict we are headed. During the Great Depression the peak was 25.2%. Over three times as high.
Gross Domestic Product (GDP): The Congressional Budget Office is predicting a GDP decline of 2% in 2009. In 1982 GDP contracted by 1.9%. Pretty close. In 1930 GDP contracted 9%, 1931 8%, and 1932 another 13%.
Car Production: Now off 25%. During the 30s off 90%.
Bank Failures: Over 10,000 in 1933. A couple of dozen last year.
Stocks: 37% now. 90% then.
If nothing else, we have to maintain an optimistic attitude that says we’re going to pull out of the downward trend. I say take advantage of what opportunities are out there right now. Gain market share if you can, or develop a new creative service that you can provide and your customers are in need of.
The alternative (doom and gloom) just isn’t as much fun!
What do you think? Does the media hype surrounding the economy make you feel worse about the current situation? Let me know by posting a comment in our Trade Show Expert form, and then I will respond to it in one of my next blogs.
Until then…
Other Sources: http://blog.weatherby.net/2009/02/no-one-seemed-worried-about-the-economy-this-weekend.html
