Mike Beversluis

Friday, February 27, 2009


Plot the relative changes of several US post-WW2 recessions.

Also, what does it mean to be down in a time of flat-screen TV's and 4500 square foot McMansions? A Great Depression for Rich People:

What does a Great Depression for the relatively wealthy look like? If you spend lots of your budget on "luxuries" -- especially durables -- it is easy to postpone their consumption. This might cause gdp to fall more rapidly than if people were poorer. If you are spending most of your money to eat and stay alive, and a negative shock comes, you have to work harder to make up the difference.

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