Home > Philosophical Underpinnings > The Depression is Lumpy

The Depression is Lumpy

Depression? It Depends on Where you Live

Most of the time, when we speak of the economy, our language seems to represent it as a sort of national monolith. As if we all experienced the current situation the same way. Nothing could be further from the truth. In fact there are several economies in America, and which one you are a member of will determine whether you are living through a depression, a recovery, or the one of the biggest booms of all time.

The Recovery

For a certain group of people in the upper middle and upper class, there was a fairly steep recession, a terrible scare in the market, and then, for the last couple of years, a slow but steady recovery as stock market prices climbed back to their pre-crash condition. Though this group still suffers from the general malaise of the real estate market, in general they are out there buying things again.

Let the Good Times Roll

Another very small group of 1%ers made obscene profits from the housing and market crashes. These self-styled “masters of the universe” have grown fat on fraud and the misery of others, and have no intention of stopping now. Paying no taxes and avoiding the prison sentences they justly deserve, they are, at this very moment, engaging in further speculation of the type that fuels inflation that none of the rest of us can afford, and causes grave harm to society.

Main Street

For the rest of us, it depends on where you live. When we see articles in print and online touting the “recovery” it is this fact that they rely on. Statistics are easy enough to skew. What we focus on determines what we see. That is why the employment numbers posted by the government are so confusing and at times misleading. It is common knowledge that the official definition of the word “unemployed” serves to skew the figures right from the start. Add to that the excitement whipped up over the job creation figures when many of these new jobs are not at all comparable to the old (lost) jobs, and we have a very murky picture.  It is true that if you happen to live in a state with comparatively low unemployment you probably aren’t catching the worst of the depression. But what would happen if we all moved to these few states?

The Rest of Us

For all of us regular citizens that have the bad luck to be denizens of the more unlucky regions of the country, such as the south, the rust belt, or the whole state of California, the depression is an obvious daily fact of life. In fact, sinse I began using the term “depression” about three years ago, not one person from any of these places has challenged me. I think of this every time I see a headline once again proclaiming that we are in “recovery” from the “great recession”.

The Poor

This final group has been living in depressed conditions forever. The reasons that a certain number of Americans have always lived in poverty are complex, but with enough will on our part it would be possible to reduce these numbers to near zero. Instead, under the flawed logic of supply side economics, that great and cruel experiment in social engineering brought to you by Ronald Reagan and the billionaires club, the number living in misery is actually growing. Soon it won’t matter what state you live in.

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  1. Mad Miles
    May 17, 2011 at 9:38 PM

    Very well put Annabel! As an English teacher I am compelled to not that I believe you meant “since” rather than “sense” in your second sentence under your “The Rest Of Us” paragraph. That irritating correction aside, you compress a great deal of savvy knowledge of modern economics into this short piece of yours. Brava!

    • Annabel Ascher
      May 17, 2011 at 10:42 PM

      Thanks for catching the typo. Fixing.

  2. Mad Miles
    May 17, 2011 at 9:39 PM

    Aahh, “note” not “not”. Kettle calling who, what?

    • Annabel Ascher
      May 17, 2011 at 10:43 PM

      Ha!

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