Currently the economic malaise the U.S. is suffering is being misdiagnosed by the government’s economists. The slack demand in the economy and persistently high unemployment levels have been called a “soft patch” by some and a “recession” by others. Experience teaches that a true recession is a temporary decline followed by a reasonably brisk return to normal conditions. What we’re seeing instead is four-year period of economic weakness with no return to normal. To that end, the economic spin doctors insist on calling this the “new normal” when in actuality these conditions are abnormal.
The current economic malaise can best be described as a depression. A depression is essentially a period of several years in which economic performance is below normal and unemployment remains stubbornly above the average. But the word “depression” is a politically unpalatable word. It’s much more soothing to the ear to use terms like “soft patch” or “Great Recession.” No one has the guts to use the cold, harsh “D word,” but it would be more helpful for most Americans if they were informed that a New Great Depression is underway. This condition is being brought to us courtesy of the 120-year cycle decline, which still has a few more years to run.
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