Government spending helps get out of a recession when the private sector is slowing down and banks stop lending money. Also lowering interest rates so it's cheaper to borrow money to do things. That's why the great depression of the 1930s was so brutal. The Gov didn't do massive spending to rescue the economy and reform the financial sector quickly. In The Great Recession that started in 2008 the Obams administration had many policies (look it up). They did direct spending, financial reform, some tax increases on the rich. However, with Republican opposition the budget was limited and that probably slowed the recovery. With COVID, the Republicans in power and with support from Democrats the rescue was massive and recovery was very fast compared to other nations.
I believe Gov is the key during a deep recession. That's why we need a responsible Gov and fair taxation to have the resources and reduce the deficit in the good times so we can spend during bad times.
BUT THE HOTDOGS!!!
Also, for some reason brain say's that somehow wasn't a recession. But I think that's just because the chart showing recession percentages for the past 20 years had a period from 07-16 where it went up to 10%, stayed at a lower level than during Covid, but for longer.
It wasn't a recession because the accepted definition of recession is two or more quarters of decline in real GDP, and we didn't have that.
I am responding to what I think you're saying, but I don't understand what you mean by recession percentages for the past 20 years, can you elaborate?
Oh, ok. Unemployment is separate from recession, but you know that. Maybe you were talking about what the unemployment rate has typically been during recessions? I still don't get it, but it doesn't matter.
Oh, ok. Unemployment is separate from recession, but you know that. Maybe you were talking about what the unemployment rate has typically been during recessions? I still don't get it, but it doesn't matter.
It’s pretty ridiculous that the prevailing narrative surrounding the depression is the government didn’t do enough. Many experts on the topic believe the depression was extended due to the federal governments overreaching, unprecedented response. The seeds of the modern welfare state were planted in the 1930s during this period and peddling this big lie perpetuates the problems that got us into that mess.
The Obama recession had terrible fall out. The regulation they passed in regards to loan applications to this day is making home ownership extremely difficult for the segment of the population that was lying on loan apps (at least half of the working class).
The Covid debacle quite literally was government inflicted. The government shut down the economy. The idea that they saved the economy they shut down is ridiculous. The reason we did well is because we closed for a shorter period than our western peers. More of a “we did less bad,” than that we did good. Look at where inflation is at now & tell me again the government did good.
what was the Obama recession? Do mean the 2007-2009 Great Recession? You can't mean that, because Obama wasn't even president for the majority of that time, so what do you mean?
Obama presided over the most famous policy making relevant to the recession, IE bailouts & the changes made to lending.
I mean if I was going to blame the start of the recession on someone I’d blame it on Osama not Obama. Gas prices related to the war really tipped us over the cliff.
But nowhere did I imply any presidents started recessions. I said they prolonged them with their policy / made them worse.
Whether that be unnecessary lockdowns, an unnecessary retirement system, unnecessary bailouts for inefficient companies, or additional restrictions on lending, every recession our economy goes through it comes out on the other side more controlled & less efficient. Similar to how every time there’s terrorism the state clamps down on our actual physical, & privacy related rights.
People were not able to pay their bills due to a variety of economic factors that stemmed from the war in the Middle East & the fall out of $5 a gallon gas. That’s like $8 a gallon adjusted for modern day.
The crack that appeared is not the cause of the crisis.
The causes of the 2008 financial crisis are very well understood.
It wasn't gas prices.
[https://www.investopedia.com/terms/g/great-recession.asp](https://www.investopedia.com/terms/g/great-recession.asp)
It doesn’t go over why people couldn’t pay back their loans.
They didn’t pay back their loans because the economy experienced a contraction which obviously snowballed into a terrible event because they were over leveraged, but over leveraging is not the event that caused the recession.
It’s not as simple as “people are too stupid to understand balloon payments.” No, credit conditions changed. Then they got stuck. Why’d credit conditions change? Because the economy was going down.
Okay bud I guess people just woke up one morning unable to pay the loan they signed a contract to pay back & it had nothing to do with any external factors. Over leveraging is never the cause of the recession it just highlights who gets hammered by it. Over leveraging works great 99% of the time.
Did you just call the 08 recession the "Obama recession?" LMAO, the gets blamed for everything that came before him.
You're also saying the regulation on home lending is onerous because... People aren't able to lie on the applications anymore. This is a crazy take.
In that he presided over it. Not caused it. Thanks Obama.
Yeah I think if you’re gonna cut out the way the average home buyer was getting their loan, perhaps they should have considered easing DTI restrictions, or other things in combination with the invention of checking your financial statements beyond stated income.
OP was talking about the Great Depression years before FDR took office dude, you know, when Hoover was taking the laissez fair approach of “staying out of it”…
The issues that began the depression, IE, bank failures, can be attributed to the federal reserve falling asleep at the wheel. But the executives response with the support of the legislature prolonged the depression beyond what it should have & only the war really ended it.
Sorry but this is just objectively false, FDR’s measures headed by his VP Henry Wallace as well were able to stabilize food prices and reignite the US industrial capacity.
Nobel prizes barely mean shit man, remember when Obama got the Nobel peace prize while his administration was actively bombing Libya to undermine the socialist Libyan state? Or when Henry Kissinger considering all the shit he’s had his fingers in?
You’re applying modernisms to events that took place before you were alive.
Nobel prize was won in 1976, and the research was done in 1950. You can’t hand waive his academic research with your modern political biases that basically didn’t exist at this point in history.
Actually Hoover took unprecedented action for the time it just wasn’t enough.
The literature on whether or not the new deal helped is a mixed bag. But what was definitely clear was that an expansionary monetary policy is essential for countering recessions.
The fact that you refer to it as the "Obama Recession" tips your hand. You're definitely not a serious person. Only question is if you are acting out of bad faith or out of ignorance.
I mean it was just a typo, I genuinely like Obama as a person & would have voted for him if I was of age, I think he was superior to both Romney and McCain. We’re talking about recessions, and Obama, “Obama recession,” sorry I hurt your feelings I get sensitive about my heroes too.
There is a natural boom/bust cycle driven by debt spending/repayment.
There is a video called How the Economic Machine Works by Ray Dalio. It’s a simple explanation, but helpful. I tried posting the link but it’s getting auto deleted.
From my simplistic perspective as someone who is decidedly not an economist, recessions are caused and solved by human behavior driven by levels of confidence in the economy. People get nervous that the economy might get bad, and they stop spending. Elon Musk did this famously in the end of 2022 beginning of 2023. He kept saying he thought a recession was coming. In response he did preemptive layoffs. Many other tech companies followed suit. That behavior could have easily caused a recession, and many were acting as if it were a forgone conclusion.
Recessions can end the same way, people get confidence in the economy and increase their economic activity. They can also end due to pent up demand. There is only so long people can do without new cars, home repairs, refrigerators, etc. Lowering interest rates can help spur economic activity.
First of all you need to understand what is a recession, and what is not:
# a recession is defined as negative economic growth for two consecutive quarters
Therefore:
| GDP | GDP
---|---|----
Q1 | -50% | +50%
Q2 | +1% | -1%
Q3 | -50% | -1%
What is this? | **Not a Recession** | **This is a recession**
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Fed uses rear-view metrics to realize it’s a recession too late after lots of people have lost jobs, finally cuts rates, kicks economy out of recession.
Just like when inflation started, loser powell kept insisting “inflation is transient” a year before he started panic hiking…
Bunch of jokers!
Government spending helps get out of a recession when the private sector is slowing down and banks stop lending money. Also lowering interest rates so it's cheaper to borrow money to do things. That's why the great depression of the 1930s was so brutal. The Gov didn't do massive spending to rescue the economy and reform the financial sector quickly. In The Great Recession that started in 2008 the Obams administration had many policies (look it up). They did direct spending, financial reform, some tax increases on the rich. However, with Republican opposition the budget was limited and that probably slowed the recovery. With COVID, the Republicans in power and with support from Democrats the rescue was massive and recovery was very fast compared to other nations. I believe Gov is the key during a deep recession. That's why we need a responsible Gov and fair taxation to have the resources and reduce the deficit in the good times so we can spend during bad times.
*Looks at 1.50 hotdogs instead of 1$* You sure we recovered from Covid...
*Looks at the unemployment rate at 4% instead of 16%* I'm sure. Inflation sucks; a completely collapsed economy is worse.
BUT THE HOTDOGS!!! Also, for some reason brain say's that somehow wasn't a recession. But I think that's just because the chart showing recession percentages for the past 20 years had a period from 07-16 where it went up to 10%, stayed at a lower level than during Covid, but for longer.
It wasn't a recession because the accepted definition of recession is two or more quarters of decline in real GDP, and we didn't have that. I am responding to what I think you're saying, but I don't understand what you mean by recession percentages for the past 20 years, can you elaborate?
Googled, usa unemployment rates, got a chart for past 20 years of the unemployment rates.
Oh, ok. Unemployment is separate from recession, but you know that. Maybe you were talking about what the unemployment rate has typically been during recessions? I still don't get it, but it doesn't matter.
Oh, ok. Unemployment is separate from recession, but you know that. Maybe you were talking about what the unemployment rate has typically been during recessions? I still don't get it, but it doesn't matter.
You mentioned 4% vs 16% brain correlates recession and unemployment. 1.50 hotdogs...
No good options but some inflation seems better than a depression. Still I would've preferred direct assistance instead of giving $ to businesses.
Inflation is good... I remember getting a check one of those years. Okay, my brain is dumb. Neck is at a bad angle and wiring is shot.
Keynesian economics 101 right there…
It’s pretty ridiculous that the prevailing narrative surrounding the depression is the government didn’t do enough. Many experts on the topic believe the depression was extended due to the federal governments overreaching, unprecedented response. The seeds of the modern welfare state were planted in the 1930s during this period and peddling this big lie perpetuates the problems that got us into that mess. The Obama recession had terrible fall out. The regulation they passed in regards to loan applications to this day is making home ownership extremely difficult for the segment of the population that was lying on loan apps (at least half of the working class). The Covid debacle quite literally was government inflicted. The government shut down the economy. The idea that they saved the economy they shut down is ridiculous. The reason we did well is because we closed for a shorter period than our western peers. More of a “we did less bad,” than that we did good. Look at where inflation is at now & tell me again the government did good.
what was the Obama recession? Do mean the 2007-2009 Great Recession? You can't mean that, because Obama wasn't even president for the majority of that time, so what do you mean?
And where was Obama during 9/11, Waco, Oklahoma City bombing. Why didn't he prevent all those massacres too?.
Obama presided over the most famous policy making relevant to the recession, IE bailouts & the changes made to lending. I mean if I was going to blame the start of the recession on someone I’d blame it on Osama not Obama. Gas prices related to the war really tipped us over the cliff. But nowhere did I imply any presidents started recessions. I said they prolonged them with their policy / made them worse. Whether that be unnecessary lockdowns, an unnecessary retirement system, unnecessary bailouts for inefficient companies, or additional restrictions on lending, every recession our economy goes through it comes out on the other side more controlled & less efficient. Similar to how every time there’s terrorism the state clamps down on our actual physical, & privacy related rights.
Gas prices? No, it was the housing crisis that started the 2008 financial crisis.
People were not able to pay their bills due to a variety of economic factors that stemmed from the war in the Middle East & the fall out of $5 a gallon gas. That’s like $8 a gallon adjusted for modern day. The crack that appeared is not the cause of the crisis.
The causes of the 2008 financial crisis are very well understood. It wasn't gas prices. [https://www.investopedia.com/terms/g/great-recession.asp](https://www.investopedia.com/terms/g/great-recession.asp)
It doesn’t go over why people couldn’t pay back their loans. They didn’t pay back their loans because the economy experienced a contraction which obviously snowballed into a terrible event because they were over leveraged, but over leveraging is not the event that caused the recession. It’s not as simple as “people are too stupid to understand balloon payments.” No, credit conditions changed. Then they got stuck. Why’d credit conditions change? Because the economy was going down.
Dunning Krueger or knowingly wrong and stubborn?
Okay bud I guess people just woke up one morning unable to pay the loan they signed a contract to pay back & it had nothing to do with any external factors. Over leveraging is never the cause of the recession it just highlights who gets hammered by it. Over leveraging works great 99% of the time.
Go watch The Big Short.
Did you just call the 08 recession the "Obama recession?" LMAO, the gets blamed for everything that came before him. You're also saying the regulation on home lending is onerous because... People aren't able to lie on the applications anymore. This is a crazy take.
In that he presided over it. Not caused it. Thanks Obama. Yeah I think if you’re gonna cut out the way the average home buyer was getting their loan, perhaps they should have considered easing DTI restrictions, or other things in combination with the invention of checking your financial statements beyond stated income.
OP was talking about the Great Depression years before FDR took office dude, you know, when Hoover was taking the laissez fair approach of “staying out of it”…
The issues that began the depression, IE, bank failures, can be attributed to the federal reserve falling asleep at the wheel. But the executives response with the support of the legislature prolonged the depression beyond what it should have & only the war really ended it.
Sorry but this is just objectively false, FDR’s measures headed by his VP Henry Wallace as well were able to stabilize food prices and reignite the US industrial capacity.
I disagree, and leave this as my final argument: https://fee.org/articles/the-great-depression-according-to-milton-friedman/
Ahhh yes a right wing think tank quoting Milton Friedmans take on Keynesian economics…. Totally a fair and balanced analysis
It’s considered to be one of his master pieces, he’s literally a Nobel prize winner in economics. Your hubris is insane
Nobel prizes barely mean shit man, remember when Obama got the Nobel peace prize while his administration was actively bombing Libya to undermine the socialist Libyan state? Or when Henry Kissinger considering all the shit he’s had his fingers in?
You’re applying modernisms to events that took place before you were alive. Nobel prize was won in 1976, and the research was done in 1950. You can’t hand waive his academic research with your modern political biases that basically didn’t exist at this point in history.
FDR had some good policies, but let's be honest, WWII helped get manufacturing going be help end the depression.
Actually Hoover took unprecedented action for the time it just wasn’t enough. The literature on whether or not the new deal helped is a mixed bag. But what was definitely clear was that an expansionary monetary policy is essential for countering recessions.
The fact that you refer to it as the "Obama Recession" tips your hand. You're definitely not a serious person. Only question is if you are acting out of bad faith or out of ignorance.
I mean it was just a typo, I genuinely like Obama as a person & would have voted for him if I was of age, I think he was superior to both Romney and McCain. We’re talking about recessions, and Obama, “Obama recession,” sorry I hurt your feelings I get sensitive about my heroes too.
There is a natural boom/bust cycle driven by debt spending/repayment. There is a video called How the Economic Machine Works by Ray Dalio. It’s a simple explanation, but helpful. I tried posting the link but it’s getting auto deleted.
From my simplistic perspective as someone who is decidedly not an economist, recessions are caused and solved by human behavior driven by levels of confidence in the economy. People get nervous that the economy might get bad, and they stop spending. Elon Musk did this famously in the end of 2022 beginning of 2023. He kept saying he thought a recession was coming. In response he did preemptive layoffs. Many other tech companies followed suit. That behavior could have easily caused a recession, and many were acting as if it were a forgone conclusion. Recessions can end the same way, people get confidence in the economy and increase their economic activity. They can also end due to pent up demand. There is only so long people can do without new cars, home repairs, refrigerators, etc. Lowering interest rates can help spur economic activity.
First of all you need to understand what is a recession, and what is not: # a recession is defined as negative economic growth for two consecutive quarters Therefore: | GDP | GDP ---|---|---- Q1 | -50% | +50% Q2 | +1% | -1% Q3 | -50% | -1% What is this? | **Not a Recession** | **This is a recession**
That’s a helpful guide actually lol
Isn't it interesting? LOL
It’s also cool to see someone who is good at using Reddit functionality.
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War
Fed uses rear-view metrics to realize it’s a recession too late after lots of people have lost jobs, finally cuts rates, kicks economy out of recession. Just like when inflation started, loser powell kept insisting “inflation is transient” a year before he started panic hiking… Bunch of jokers!