Why the Great Depression of 2020 Will Be Different

Return to Order ^ | August 25, 2020 | Julio Loredo

[Tolerance Sucks Rocks]

They are already calling the current pandemic-induced economic crisis, “The Great Depression of 2020.” The paradigm is, of course, the Great Depression of 1929 that substantially changed the world’s model of development, signaling the onset of State intervention in the economy (the welfare state).

Analysts are also calling it “The Great Jump Backwards,” because it will push the world back in time by canceling three decades of economic development. International agencies estimate the contraction in GNP worldwide at -5.2%. The Eurozone with be the hardest hit with -9.1%. “It is the worst economic recession since 1870, a devastating blow for the world economy,” declared David Malpass, president of World Bank Group.

While the world’s situation seems bleak enough, I live in Italy, where the plight is even worse. The Organisation for Security and Co-operation in Europe (OCSE) recently published a study estimating the fall in its GNP at around -13%. This pushes Italy back to the economic level of 1993. According to OCSE pundits, the Italian situation should improve a little in 2021, bringing the country back to the situation of 1997. This improvement is hardly a consolation… Thirty years of economic development will go down the drain and, with them, so many dreams of a better future.

The fall in per capita income will be the worst since World War II. “It is the worst crisis since the Second World War, capable of bringing devastation to the health, the well-being and the work of people, creating unprecedented uncertainty,” said OCSE analyst Robert Boone.

[Tolerance Sucks Rocks]

Combined General and Coronavirus PING!

[Jonty30]

The economy was supposed to reset itself around 2005, but we’ve pushed it until 2020, or more. It’s going to reset, whether we want it to or not.

[JerryBlackwell]

Somebody tell him Nasdaq at record highs

[Secret Agent Man]

more people dying from other people rather than starvation

[nickcarraway]

I haven’t heard a single person call it that. This guy seems to be pretty fact-free.

[Theoria]

No growth. Just debt.

[bigbob]

Yep, and I’m not caring much about the Eurozone. Socialistzone would be more accurate.

America First!

[clearcarbon]

Setting up the return of obamanomics under biden.

[moovova]

I’m awaiting Mac Slavo’s and Tyler Durden’s input.

[ChildOfThe60s]

Non-stop Central Bank intervention in the markets does not represent real growth or real wealth. Nor does electronically created money which is backed by nothing.

[Sequoyah101]

Who is this lying fool anyway?

Somebody tell him big ticket manufactured goods orders are up 11.2%.

Lies and damn lies. These people just disgust me. I genuinely hate them.

The only Depression I see is if biden and harris are elected.

[JesusIsLord]

The economy was supposed to reset itself around 2005

Could you elaborate on what an 'economy reset' looks like? Serious question. Thanks.

[Jimmy Valentine]

There is too much pent up demand for a depression. Also returning business from overseas will boost the economy. China will take the big hit.

[central_va]

Also returning business from overseas will boost the economy.

That makes no sense to me.

[central_va]

No living Conservative ( except me ) seems to understand what our founders understood instinctively. Tariffs and economic self sufficiency are the one true way to prosperity.

[Jimmy Valentine]

We are repatriating manufacturing albeit slowly and that will help.

[central_va]

What would help is an escalating across the board import tariff. Start it at 10% and raise it 2% per year.

[Jimmy Valentine]

Agreed.

[Grampa Dave]

I haven’t heard a single person call it that. This guy seems to be pretty fact-free.

BOL!