Unemployment Rate was 10.8% Nationally in early 1980s (bankruptcy, loans, collection)
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Actually I disagree. Back then the mantra was to retrain for high tech jobs and that's what they did. Today high-tech has gone offshore and more white collar people are getting laid off.
So today you have high paid white collar people losing their jobs and nothing "higher up" to re-train for. Instead they are lining up for jobs at Wallymart and such.
The economy has no signs of reversal or bottoming out. Port statistics came out and every port in NA is down with their numbers.
That is a number that we won't feel today but will in 2-3 months when possible shortages start showing up.
Some (not all) retrained, but that doesn't take overnight. By 84, 85, sure, the economy was running on all cylinders. But I wouldn't have wanted to be in a place like in Youngstown, Ohio back in '83, where everything went to pot.
I wasn't cognizant then, but I suspect that the economy was in far more dire straits back in the early 80s than it is today. It was the death knell for the manufacturing industry, which employed a very high share of Americans before that point. Few were educated, and therefore couldn't grab "white collar" jobs. As a result, they were trapped between a rock and a hard place.
And I don't think things will get as bad as they did even then. I think the GDP numbers today confirm that it's probably not as bad as many people "think". I do think this is the worst recession since the early 80s one, however. Also, I think we should be more concerned about 3-5 years down the line, when Baby Boomers deplete Medicare and Social Security. That's when the s*** will hit the fan, especially if the economy is still lethargic. And I don't expect a big turnaround...more likely a "jobless recovery" starting in the 3rd quarter, with unemployment peaking around 8-8.5%, and staying above 7% through at least the beginning of 2010.
Umm...Few were educated is compeltly wrong. I did not live during the 1980s, but the 1980s were miles ahead of the late 19th century in terms of edcation.
I did live during the 80's and was old enough to work.
During the 80's a HS diploma got you a decent white collar job even on Wall Street.
Not like today where even a secretary practically needs a Bachelors degree and Masters degree is almost required for higher up white collar work.
I did live during the 80's and was old enough to work.
During the 80's a HS diploma got you a decent white collar job even on Wall Street.
Not like today where even a secretary practically needs a Bachelors degree and Masters degree is almost required for higher up white collar work.
Yeah, take it from him.
I am just about to graduate and I am teething for such an easy time like you had twenty years ago!
Things are not pretty now but I"m pretty tired of Obama and the media blitz scaring everyone by this whole "Worst financial crisis since the Great Depression" stuff. Carter years weren't so great: double digit unemployment and inflation, gas lines, and he was off with his head in the sand in the Middle East.
I rememebr the 70's and the conbination od high unem;poyemnt and the double difit inflation was much harder. I juts hope inflaction stays low o0r epole will really hurt. Those with the adjustable rate mortgages just think there gih now;fixed rates were murder then.
I was looking at some statistics about unemployment in the past and came up with this interesting chart. Unemployment nationally was 10.8% in 1982. It was up to nearly 20% in some communities. Will it reach that point this year? I read somewhere that President Reagan would not admit that we we were in a recession back then and he and the Federal Reserve actually created the recession on purpose so they could break the cycle of inflation.
I was alive and started college in 1982. I had to pay huge interest rates to borrow money for college, and my sister just a couple of years before had paid some incredible rate for her mortgage (19% comes to mind).
Paul Volker had to do something about rampant inflation, and the only way to it was to raise interest rates, which in turn caused a slowing in the economy. At least Reagan was optimistic, took a positive view, proposed tax cuts and business incentives, and we eventually pulled out and had 10 years of growth.
Contrast that to Obama, who instead of telling us "there is nothing to fear but fear itself" has been telling us how dismal and gloomy things are, and he keeps telling us that unless we let Nancy Pelosi and Harry Reid spend nearly a trillion dollars on all kinds of pork, we're all doomed.
Now maybe the conditions are worse than 1982 and maybe they're not, but I know which President inspired confidence and was a leader.
I was alive and started college in 1982. I had to pay huge interest rates to borrow money for college, and my sister just a couple of years before had paid some incredible rate for her mortgage (19% comes to mind).
Paul Volker had to do something about rampant inflation, and the only way to it was to raise interest rates, which in turn caused a slowing in the economy. At least Reagan was optimistic, took a positive view, proposed tax cuts and business incentives, and we eventually pulled out and had 10 years of growth.
Contrast that to Obama, who instead of telling us "there is nothing to fear but fear itself" has been telling us how dismal and gloomy things are, and he keeps telling us that unless we let Nancy Pelosi and Harry Reid spend nearly a trillion dollars on all kinds of pork, we're all doomed.
Now maybe the conditions are worse than 1982 and maybe they're not, but I know which President inspired confidence and was a leader.
Or maybe Obama just tells the truth about how things REALLY ARE....
Or maybe Obama just tells the truth about how things REALLY ARE....
You're missing my point. A large part of the economy is consumer spending and that is highly influenced, as are the markets, by the mood of the country. Seeing the President going on TV twice a day, looking frightened, and telling everyone things are getting worse and we're about to walk off a cliff unless a mega-pork spending bill is passed, just doesn't help.
It has nothing to do with "telling the truth" or lying. It has to do with leading and inspiring and not giving in to the FUD. Part of the reason that the country began to pull out of the depression in 1934 was the optimism that Roosevelt inspired, both through action and through leadership. His inaugural address, fireside chats, and public appearances were examples of his inspiring of the country. Reagan gave off that same confidence and calm.
Contrast Reagan and Roosevelt with our new President. While I hope for his success and think he's made some good appointments, constantly talking down the economy and making the case that only a mega-pork spending bill with little real stimulus potential is the only thing that can save us from disaster is just doing more harm than good.
I think GWB and Paulson made the same mistakes, running around telling everyone that we had to get a $700 billion TARP bill, and then squandering the money, which had minimal impact. The resulting panic and disorganization caused almost as much harm with consumers and the markets as the actual problems.
I was looking at some statistics about unemployment in the past and came up with this interesting chart. Unemployment nationally was 10.8% in 1982. It was up to nearly 20% in some communities. Will it reach that point this year? I read somewhere that President Reagan would not admit that we we were in a recession back then and he and the Federal Reserve actually created the recession on purpose so they could break the cycle of inflation.
So far this recession is not as bad as the one in the early 1980s.
Yeah, but in the early 80s, they still had a lot of industrial, unionized industries. Many industries that put ppl to work have been exported to other countries. This is why I feel that the situation now is graver than the recession of the early 80s.
I was alive and started college in 1982. I had to pay huge interest rates to borrow money for college, and my sister just a couple of years before had paid some incredible rate for her mortgage (19% comes to mind).
Paul Volker had to do something about rampant inflation, and the only way to it was to raise interest rates, which in turn caused a slowing in the economy. At least Reagan was optimistic, took a positive view, proposed tax cuts and business incentives, and we eventually pulled out and had 10 years of growth.
Contrast that to Obama, who instead of telling us "there is nothing to fear but fear itself" has been telling us how dismal and gloomy things are, and he keeps telling us that unless we let Nancy Pelosi and Harry Reid spend nearly a trillion dollars on all kinds of pork, we're all doomed.
Now maybe the conditions are worse than 1982 and maybe they're not, but I know which President inspired confidence and was a leader.
Have you not been listening to any of Obama's speeches? He is realistic, but at the same time very optimistic. I suppose that you would prefer W playing a fiddle while the US burns down to the ground. At least Obama is trying to do something about the mess that Bush caused. Obama has been in office only a little more than a week. He will do just fine.
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