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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (292526)	6/28/2006 12:27:22 PM
From: combjelly	Respond to of 1576610

"How much tougher would a "real recession" have been on Americans, and how long would it have lasted?" Hard to say how much tougher it would have been. With normal economic policies, unemployment climbs to about 8% or 9% and production goes down about the same amount. They last anywhere from 6 to 18 months before production is back to pre-recession highs, with unemployment decreasing as production increases. There is much wringing of hands and politicians making speeches, but there it is. The last time we tried to stave off a recession with artificial means, we got the stagflation of the 70s. Forget That 70s Show, it wasn't a very pleasant experience for anybody...

To: Tenchusatsu who wrote (292526)	7/2/2006 8:07:27 PM
From: tejek	Read Replies (2) \| Respond to of 1576610

But how much worse would things have been if, like some on this thread argue (perhaps hypocritically), that the economy should have run its natural recession cycle after 2000? Every expert knows that Bush traded one bubble for another, but is that necessarily a bad thing? How much tougher would a "real recession" have been on Americans, and how long would it have lasted? Is the coming recession going to be much worse thanks to Bush, or just another mild one? First of all, the American economy is a complex one made more complex by the global economy. There are three major reasons why the recession was relatively shallow: we started from a high place at the end of the Clinton expansion; war creates jobs.......we have spent over $300 billion since the Iraqi war.......not all of it went into GOP pockets.....it has fueled the creation of jobs; and third........you can thank the strength of BRIC; that would be Brazil, India, and China. All three countries are coming of age and are experiencing an infrastructure boom. We are selling a lot of products to them. Inspite of all that, this is a weak recovery. The areas of the country doing best are those that have some aerospace and defense industries........think parts of Florida and TX, CA, Phoenix and Seattle. Most of the rest of the country is doing just okay.