The article said — “Five months after the Smoot-Hawley tariffs, the unemployment rate hit double digits for the first time in the 1930s.”
We don’t have to have anything like Smoot-Hawley tariffs now — because the banking and financial system is doing the same thing that Smoot-Hawley did before. Look for the double digits unemployment to happen in 2009 and the Great Depression to take hold then...
“Look for the double digits unemployment to happen in 2009”
I’d be shocked if we don’t see 10%+ unemployment in 2009, particularly in the Northeeast and Midwest. Then, in 2010, inflation will begin it’s assent when all of this phoney money is disseminated into the marketplace by banks being coerced by Washington to lend.
We already have double digit unemployment in this country.
Most folks don't understand that unemployment numbers didn't exist until 1941. These numbers were divided into 7 levels - with "U7" being the broadest indicator of unemployment, and the one that compared directly to the numbers during the 1930's.
In fact, U7 numbers were the "official" numbers that were reported for over two decades.
Then the government got their hands into the mix and began reporting U3 numbers so that unemployment didn't look so bad.
The Bureau of Labor Statistics reformulated the unemployment measurement in 1995 and condensed everything into 6 levels instead of 7. The goverment reports the U3 level as being official.
If we want to measures "apples to apples" with the Great Depression then we need to quote U6 levels of unemployment.
The November level of U6 was 12.2%, up from 11.1% in October.
History repeats itself because the average American today beleives Zer0 is coming in with a new socialist agenda.
Unfortunately it’s a replay of the failed Keynsian model embraced by the elitists of the 1930’s. An economic recovery this summer looks very weak at this point.
The vast majority thinks this economy is bad. Well how’s
14% to 19% 1930’s sustained unemployment compare to 6.7% today.
It;s not ther banks which have led to this debacle.
It’s rest with the regulations and mandates forced on to the banks. Sub prime loans.