The Depression: If Only Things Were That Good

In analyzing any economic period, one can focus on wages or employment levels – or delve deeper into a society’s potential, examining education and innovations. David Leonhardt takes the latter approach in comparing the current crisis with the Great Depression, when television, autos, aviation, nylon and other materials were under development. A lack of technological innovations that provide for mass employment could signal a structural shift in the US economy with persistent states of stagnation, high unemployment and concentrations of wealth. Insistence on efficiencies will target unproductive industries like housing, finance and health, as consumers resist high costs. The US “continues to have advantages that no other country, including China, does: the world’s best venture-capital network, a well-established rule of law, a culture that celebrates risk taking, an unmatched appeal to immigrants,” Leonhardt writes. “These strengths often give rise to the next great industry, even when the strengths are less salient than the country’s problems.” – YaleGlobal