Monday, November 17, 2008

Unemployment is Skyrocketing

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There is an old joke among economists that states:
"A recession is when your neighbor loses his job. A depression is when you lose your job."

The list above shows the current unemployment rate, where as the list below shows the unemployment rate during the period of the Great Depression. If you look at Michigan you could see that were are basically already at a 1930 level of economic despair. Will the rest of the nation follow or will the Midwest enter a regional depression while the rest of the US just have a recession?

Year Unemployment rate

1923-29: 3.3

1930: 8.9

1931: 15.9

1932: 23.6

1933: 24.9

1934: 21.7

1935: 20.1

1936: 17.0

1937: 14.3

1938: 19.0

1939: 17.2

1940: 14.6

1941: 9.9

1942: 4.7


Malcolm said...

and now we also hear that Lakeside mall up here in the Utica/Sterling heights area may be going broke.
With Circuit City gone, and Best Buy on the ropes, it makes you wonder where you will buy anything in the future.

Precious said...

When people go broke and hungry, I feed them fritters & grits!

Chris said...

I guess the counter argument is that maybe people need to start saving money, start paying off their massive credit card debt, and quit buying things.

I have been hearing a lot of talk on the news that any "Mall retailers" are all going to get hit really hard by the recession and people spending less money.

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