What are the biggest similarities between the current economic conditions and those at the start of the Depression?
Gillette: The period from 1929-39 that is commonly referred to as the Great Depression was actually comprised of two recessions. The first, lasting 43 months, that began in August of 1929 yes, prior to the stock market crash on Black Thursday, Oct. 24, 1929 was the most severe. The second, milder recession began in May of 1937 and lasted a more typical 13 months. The difference between an average U.S. recession and the Great Depression is a matter of degree of decline in economic activity and the pain felt by an average household. The most striking similarity between 1929-32 and today is that both periods were preceded by excessive and careless use of credit. A word of caution: While all recessions have similarities, no two are sufficiently alike to prompt identical policy prescriptions for recovery. History does not repeat itself precisely. Q: What are the biggest differences? Gillette: The economic pain felt during the ’30s was, in order of magnitude, many times greater than we can e
