Intersecting Minds: Education, Business and Technology at the North Carolina State Jenkins Graduate School of Management

An E-mail With a Friend | February 5, 2009

Barack Obama is stepping up pressure on Congress to enact the stimulus. He penned an op-ed today stating the following:

“This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,”

I received an e-mail from a friend today, who’s upset about the potential of a stimulus getting passed. He wrote:

“We may not be able to reverse? Are you f***ing kidding me??”

My response:

“The entirety of his statement is true. Our economy is on the precipice of a full-blown depression. In fact, the parallels to the 1930’s are almost eerie. And this time we don’t have the manufacturing capacity or a world war to pull us out of the mess. If we do nothing (i.e. Hoover) it’s very likely we would see depression-like symptoms: double-digit unemployment, deflation and an inability to pull ourselves out of it. Think Japan in the 1990’s.

Would we come out of it eventually? Probably. Is it a guarantee we would come out of it? No. And if/when we did, there’s no guarantee that we would still be the world’s dominant economy. We SHOULD be very afraid. Fearmongering is justified when there’s something to be afraid of. Right now we have something very bad to be afraid of.”


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