Recession Vs. Depression: Justin Fox On Learning From Past Mistakes
Even if we do return to pre-2007 levels, it doesn't mean that everything is business-as-usual. When you adjust for the number of new immigrants to the country and increased population (about 17 million between 2007 and 2014) Fox argues that you actually need millions of new jobs to fix the labor shortage. "No other U.S. recession since World War II has been nearly this devastating to employment," Fox adds.
On a more positive note, Fox says that we're doing quite well when you compare the job losses in this Recession to those of the Great Depression. Similar to today's current economic state, The Depression was "the last U.S. downturn brought on by a severe financial crisis," Fox says. When you look at the percentage of job losses from 1929 to 1939, Fox says, "they make for a much scarier jobs chart than the current recession." So it seems that we've learned something from our past mistakes. Albeit, Fox concludes, probably not enough. Fox is a leading voice on financial matters and market conditions and is the author of The Myth of the Rational Market. He is also the editorial director of the Harvard Business Review Group.