Tuesday, January 5, 2010

Stop Worrying about a Double-Dip Recession

We simply never had a double-dip recession. Ever. People who threaten us with the specter of a double-dip recession (mostly the ignorants in the media) are refusing to look at any historical facts. Never in our economic history have we had such a thing. In every case they're invoking, there were actually two separate recessions:
- In the 30's, we had a recession a few years after the Great Depression, which was caused by the prior heavy government intervention into the way business worked. It was separate from the Depression.
- Early 80's: The 1980 recession was followed by a new one in 1981, which was caused by a combination of skyrocketing fuel prices and the government's efforts to control inflation

So as you can see, it's was either Government, or external factors, that caused a close, new recession. But by the way the economic cycle is working, there is absolutely no reason to fear a double-dip recession.

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