Wednesday, July 10, 2013

A Tale Of Two Depressions

The Greek crisis is often compared to the American Great Depression of the 1930's, usually because reported unemployment is currently so high in Greece, around 27%.  It had reached over 30% in the US back then.

One chart: A comparison of nominal GDP annual rates of change starting in 2009/1930.

I leave the interpretation to the reader.. fell free to use the comment button !!


  1. Hi Hell,

    I have quite a problem comparing both animals.

    I'd certainly welcome a comparison between China recent years with US of the early thirties. I already have a difficulty accepting people like Krugman or Bernanke who compare US of to-day against their grand-daddies counterparts. Especially in their attitude to consumption and savings...

    I fail even more to understand how one could the pitch two beasts you set against each other.

  2. My chart comparing the two was more in the nature of debunking the notion that Greece is, in fact, in a Great Depression. It isn't, and that's because until quite recently personal consumption had held up remarkably well.

    There was so much "fat" in the shadow economy (makes up an additional 30-35% of official GDP) that things didn't tank as fast as one would expect, given the huge unemployment.