Tags: recession | not | depression

Numbers Show Recession, Not Depression

By    |   Monday, 22 Jun 2009 10:17 AM

With the U.S. suffering its worst financial crisis since the 1930s, many analysts and investors have compared today’s economy to the one of that period as well.

But while we may be suffering the worst recession since the 1980s, it’s nowhere near as bad as the Great Depression of the 1930s. Some experts even maintain that the recession already is ending.

Here are some numbers to compare our Great Recession to the Great Depression, from CNNMoney.com.

Notice the stronger policy response now, in addition to the smaller damage.

Bank Failures

Now: 57 (Dec. 2007 to May 2009)

Representing 0.6 percent of all banks

Then: 9,096 (Jan. 1930 to March 1933)

Representing 50 percent of all banks

Unemployment Rate

Now: 9.4 percent

Then: 25 percent

Economic Decline

Now: 3.3 percent (Second quarter 2008 to first quarter 2009)

Then: 26.5% (1929 to 1933)

Largest Drop in Dow

Now: 53.8 percent (Oct. 9, 2007 to March 9, 2009)

Then: 89.2 percent (Sept. 3, 1929 to July 8, 1932)

Change in Prices

Now: +0.5 percent (Dec. 2007 to March 2009)

Then: -25 percent (1929-33)

Emergency Spending

Now: 2.5 percent of GDP for two years

Then: 1.5% of GDP for 1 year

Increase in Money Supply

Now: 125 percent (September 2008 to May 2009)

Then: 17 percent (1933)

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Economy
With the U.S. suffering its worst financial crisis since the 1930s, many analysts and investors have compared today’s economy to the one of that period as well.But while we may be suffering the worst recession since the 1980s, it’s nowhere near as bad as the Great...
recession,not,depression
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2009-17-22
Monday, 22 Jun 2009 10:17 AM
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