Recessions

PR people say that if a statement is made often enough it becomes fact whether it is or not. One current example is that the most recent recession was the worst since the Great Depression but if you review the data this may not be the case. The most commonly used statistic is the unemployment rate which reached 10% in Oct of 2009 but during the 1980 to 1982 recession it hit 10.8% in Sept of 1982. During the recent recession the prime interest rate has been 3.5% but in 1981 it reached 21.5%. The inflation rate since 2008 has been about 2% but in the early 80’s it reached 13.5%. Personal income rose quickly after the 1982 recession but income has declined since 2008 to the present and the decline is most evident in the middle and lower income groups which means the gap has widened more severely than in earlier recessions. Six years after the current recession started there are fewer people working than in 2008. In the recession of 1982 the number of people employed increased by 6% within four years after the recession ended. I believe a more accurate statement would be that the recession of 1980 was much worse but the recovery was much better.