mis-sold ppi

Comparing the depression 1929-39 & the recession today will give you very clear picture the impacts significant economic catastrophe on the world. Many individuals are not aware the fact that the depression just as the recession have affected every industrialized nation the world. The global impact the recession has impacted the economies nations & peoples throughout the world.

While minor recession is normal event healthy economy not as abrupt or long-lasting as the current depression. Under normal circumstances the economy will constantly make fluctuations expand & contract as the markets change. These fluctuations are called “corrections” & happen with the flow industry. When an event lasts longer than two quarters or six months is no longer “correction” becomes an official “recession.” The difference between recession & depression is best described by an oft used economists joke that recession is when your neighbor loses their job depression is when you lose your job. The differences between the two are subjective & for many individuals living & struggling today we are depression.

A depression/recession happens when there is low living standards & low employment. During the last depression people lost their land & homes & were forced to live by any means they could. Today people find themselves homeless as result foreclosure & also must live by means that classify them as living below the standard. California has an official unemployment rate 12% however that does not include those individuals who have given up looking for work work part time or work completely out their field for minimum wage. When these people are added the total unemployment California is over 20%. In 1929 the unemployment rate California was 28%. These unemployment figures are not unique to California rampant unemployment is occurring throughout states that are overly regulated.

Under normal circumstances market will correct itself through the normal forces supply & demand. As demand is lowered businesses lower wages & can build more product for lower cost which results lower prices to consumers & increases demand. However the last depression & this recession the government has prevented this natural flow & created regulations restrictions & mandates that have required businesses to maintain high costs even while they have lost money. This has had the same result as 1929 businesses have had to lay employees & close their doors. The unfortunate result this is that people who are unemployed cannot buy products other industries & demand across the board drops.

Some people have argued that the last depression & the current recession are not the same because the cost living was different & people were hungry & really poor during the last depression. But to keep perspective 1929 new car fully loaded cost $695 2009 new car fully loaded averages $23 000. A new house 1929 before the crash averaged $3 500 2007 before the crash new house averaged $400 000. One may argue that people today have more money to spend however 1929 the average income was $6 000 per year 2009 the average income was $30 000 per year. So simple mathematics would tell person that if the income the average American has only risen by five times since the great depression costs should have risen about the same. But this not the case.

The impact the recession has been dramatic change lifestyles & priorities for the majority Americans. Most people have had to develop skills that incorporate ingenuity & creativity to survive the loss their home job & lifestyle. Many individuals have found that their coping strategies have been tested & many cases depression has become broad & debilitating condition. Some people have found that they have been left floundering with job loss house payments that exceed their means & rising taxes. As the economic melt down has entrenched itself on global basis the impact has been felt at the most base levels society.

There have been several recessions since the last “great” depression & undoubtedly once the politicians currently office have left this will become “great” depression as well. The difference for most people is that the ability to think out the box to earn living & survive have become greatly diminished this recession & left many individuals who were left without job or income feeling that they were unable to respond positively to the circumstances.

An economy”s growth & corrections are often cyclical. When there are deliberate adjustments made to an economy to create false increase the economy the inflation that results creates balloon that bursts suddenly & abruptly. Through the use false interest economic incentives & inaccurate reporting by major financial institutions many people were led to believe that the investments they were making were sound. The sudden growth the housing market car companies financial institutions were not prepared for the sudden correction that was made & thus fell farther & harder.

In re-evaluating priorities many families began to identify those parts their lives that were critical to maintain. To the detriment many retail outlets most families have found that they do not need many the material items that they owned before the recession. People who could took advantage the ability to buy home they could afford right before the home they were priced out went into foreclosure. Other individuals downsized their family vehicle before the car with the high payment was repossessed. Staying one step ahead repossession & foreclosure many families were able to salvage & maintain standard living they could afford.

An important difference between the last depression & the current recession is that people have been able to work through the Internet. While there may be no jobs available their state or region is very easy to work for an individual another country. This has been tremendous benefit for many families who would otherwise be left homeless.

As the only industrialized nation the world with national healthcare the United States has people dieing & ill that cannot receive necessary medical care. The individuals ardently opposed to national healthcare have some type insurance or subsidy that pays their health bills. The exorbitant costs healthcare do not affect these individuals. One must wonder if they would feel differently if they were unable to attain healthcare for dying child or were forced to buy their prescriptions one pill at time because they could not afford supply medication. The cost healthcare for most newly indigent homeless individuals is result the cost healthcare that they could not afford.

The overall effect the recession will be remembered through history as time when individuals had to find validity through their personal & internal successes rather than the validity that has historically been found through job & income. One the results the current change is that people are relocating to areas where they can afford to live.

To get out the last depression the government ended many the regulations & restrictions that had stopped free enterprise. They also imposed rationing started six million defense worker program drafted six million soldiers & ran massive deficits to put more money into the hands the citizens. This has not happened the current recession as banks have been bailed out federal money has been stopped at the state level & money for jobs have been diverted to state programs that do not increase jobs but further support the government agencies & departments that regulate business.

There was mass movement during the last depression. Many people came to California seeking opportunities & benefits that this beautiful state had to offer. The opposite is & will occur as the recession continues. There is mass exodus citizens leaving California who are seeking fewer governmental regulations & restrictions. Lower taxes & an affordable standard living is being sought by individuals who have lost their homes & businesses California while state government has made no effort to alleviate the problems that have resulted from recession.

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