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Major correction or a major depression?
"Depression" is a more colloquial term, which to me implies a prolonged period of reduced economic activity. Corrections/recessions can be over fairly quickly, no matter how large they are, if the government doesn't prolong them with stupid policies.
Yes, but when has a government acted in a way that doesnt prolong it? They love creating those worthless policies that seem to make it worse.
It pretty much only happened in 1921: https://manhattan.institute/event/the-forgotten-depression-1921-the-crash-that-cured-itself.
We have observed different levels of prolonging, though. The Great Depression and Great Recession were subjected to much more government intervention than the others and they lasted much longer.
Yes. Maybe that will happen again with all the government intervention. Let us hope they dont think of something cleverly stupid.
The best hope is an administration that's too bumbling and incompetent to respond in a timely manner. Supposedly, that's what happened in 1921. By the time they got around to addressing the downturn, it was over.
exactly. basically, we would need a government made up of nothing but Joe bidens. completely incompetent demented zombies who don't intervene anywhere because they don't realize anything anyway
Alternatively, it could be an administration that is constantly undermined and resisted.
It's a different world and probably not plausible to sufficiently delay state action.
Well....have you seen how incompetent the politicians are? Half of them are the same age as Biden.
That is really slow.
Dont forget the Long Depression at the end of the 19th century! That was a odd one though
I think that one is just a misnomer. The end of the 19th century was a period of rapid economic growth and expansion. I don't think "the long depression" is anything more than modern Keynesian economists misinterpreting economic history.
I'm not any sort of expert on this period, though, so I'd be interested to see evidence that the standard of living was actually depressed in this period.
The silver of 1873 really messed up a lot of stuff though having a pretty wild cascading effect on the economy
They're going to deal with a major correction. How bad the next cycle is is still TBD.