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[Marxism] A Tale of Two Depressions




Often cited comparisons â which look only at the US â find that todayâs
crisis is milder than the Great Depression. In this column, two leading
economic historians show that the world economy is now plummeting in a
Great-Depression-like manner. Indeed, world industrial production, trade, and
stock markets are diving faster now than during 1929-30. Fortunately, the
policy response to date is much better.

The parallels between the Great Depression of the 1930s and our current Great
Recession have been widely remarked upon. Paul Krugman has compared the fall in
US industrial production from its mid-1929 and late-2007 peaks, showing that it
has been milder this time. On this basis he refers to the current situation,
with characteristic black humour, as only âhalf a Great Depression.â The
âFour Bad Bearsâ graph comparing the Dow in 1929-30 and S&P 500 in 2008-9
has similarly had wide circulation (Short 2009). It shows the US stock market
since late 2007 falling just about as fast as in 1929-30....


full:

http://www.voxeu.org/index.php?q=node/3421




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