Monday, June 13, 2011

Recession Affects Groups Differently

link here to article

John Kenneth Galbraith had some words of wisdom on the differential impact of recession. The NYT's reprinted his 1993 comments which still have a ring of truth. I would just add that the climate today is different from that in 1993. Politics are more polarized, and the bank bailout created an extremely negative public reaction and a public backlash against government intervention in the economy. The cost of the bailout, and the loss of tax revenue from a deep recession, resulted in extremely high budget deficits that played into the hands of the reincarnated deficit hawks in the GOP.

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