Great Recession

“ Finally, our economy was ravaged by inflation--inflation that was plunging us into the worse recession in four decades. At the same time, Americans became increasingly alienated from big institutions. ”

“ But if, on the other hand, growth in the supply of money does not keep pace with the economy's current production, then prices will fall, the nations's labor force, factories, and other production facilities will not be fully employed, or both. ”

“ Our credit in finance today is greater than that of any other country on earth. Our standing before the world in credit is the very highest. Business in our land is prosperous, barring one or two instances, such, for example, as the decrease for a while in the demand for steel as building moves slowly and, if you please, something of a decadence in the -construction or selling of automobiles, caused by war, of nations decreasing export sales. ”

“ In our economy, it is a myth that we must choose endlessly between inflation and recession. Together, we build the foundation for a strong economy, with lower inflation, without contriving either a recession with its high unemployment or unworkable, mandatory government controls. ”

“ They're coming from the very people whose past policies, all done in the name of compassion, brought us the current recession. Their policies drove up inflation and interest rates, and their policies stifled incentive, creativity, and halted the movement of the poor up the economic ladder. ”

“ For the probably receipts of the next year I refer you to the statements which will be transmitted from the Treasury, which will enable you to judge whether further provision be necessary.
The great reduction in the price of the principal articles of domestic growth which has occurred during the present year, and the consequent fall in the price of labor, apparently so favorable to the success of domestic manufactures, have not shielded them against other causes adverse to their prosperity. ”

“ For the first time since the 1960's, America is enjoying strength in economic growth, business investment, productivity, and the creation of new jobs—6 million in the last 20 months-while at the same time, we're keeping inflation down. ”

“ It caused the establishment of great new industries and the expansion of others; the maintenance of good wages for American workingmen; the supplying of the American market with American-made goods in place of foreign, often of better quality and at lower prices than the foreign; and at the same time an abundant revenue to be applied not only to the current expenses of government but also to the extinguishment of the public debt. ”

“ At the IMF and World Bank, I reported that an American economic renaissance is underway, leading the rest of the world from the darkness of recession toward brighter days of renewed hope and global prosperity.
World economic growth today is nearly twice what it was 4 years ago, and inflation in the industrial countries is half of what it was. ”

“ These loans, being drawn from capital (in lieu of taxes, which would generally have been paid from income, and made up in part or altogether by increased economy) must, according to the principles we have laid down, tend to impoverish the country: yet the years in which expenditure of this sort has been on the greatest scale, have often been years of great apparent prosperity: the wealth and resources of the country, instead of diminishing, have given every sign of rapid increase during the process, and of greatly expanded dimensions after its close. ”

“ Well, on Friday, we learned that after twenty-two straight months of job loss, our economy has now created jobs in the private sector for six months in a row. That’s a positive sign. But the truth is, the recession from which we’re emerging has left us in a hole that’s about eight-million jobs deep. ”

“ We recognize that interest rates are potent factors in production and business activity, and for the purpose of further equalizing and of further lowering the rates of interest, we favor such monetary legislation as will enable the varying needs of the seasons and of all sections to be promptly met in order that trade may be evenly sustained, labor steadily employed, and commerce enlarged. The volume of money in circulation was never so great per capita as it is to-day. ”

“ Next, this bill also puts needed money back into consumers' pockets, the consumers that need it the most -- middle class families that have seen their wages decline far longer than what the economists say this recession -- for the length of this recession. ”

“ In a similar manner we find that the capital of a country may increase rapidly without wages rising in proportion—as, for example, seems to have been the case in England after the great mechanical improvements at the end of the 18th century up to the repeal of the Corn Laws—whilst in new countries where wages are the highest there are generally complaints of the scarcity of capital. But perhaps the most striking conflict of the theory with facts is found in the periodical inflations and depressions of trade. ”

“ But there are other countries, and England [and the United States are] at the head of them, in which neither the spirit of industry nor the effective desire of accumulation need any encouragement. In these countries there would never be any deficiency of capital, if its increase were never checked or brought to a stand by too great a diminution of its returns. It is the tendency of the returns to a progressive diminution which causes the increase of production to be often attended with a deterioration in the condition of the producers ”

“ But what the world in fact has seen has been the complex case of a fall in prices accompanied by great improvements in production. The business man and capitalist has had, to be sure, to [Pg 102] deal with falling prices; but the same amount of capital and labor has turned out more commodities than before; and his total money returns, so far from declining, have generally increased. The money incomes of the managers of industry have shown the same upward movement as the money incomes of the other classes in society. ”

“ The present state of our economy is disturbing. We take office in the wake of seven months of recession, three and one-half years of slack, seven years of diminished economic growth, and nine years of falling farm income. ”

“ This week, the economists who officially decide when recessions start and end declared the recession of 2008 to be over. But if you’re one of the millions of Americans who lost your home, your job, or your savings as a consequence of the recession, this news is of little comfort or value. ”

“ On the road and in letters from my fellow Americans, I've been touched and buoyed by the words of support for the changes we have put in place and the progress we've made. It's been a good beginning: Inflation is down; interest rates are down to historic lows; the deficit is down; investment is up. ”

“ I concede, sir, that, in the ordinary mutations of business and commerce in all seasons, and daily, stock markets rise and fall; but behold this country as it stands as to honest material of just speculation on exchange! ”

“ We will get this recession behind us and return to growth soon. We will get on our way to a new record of expansion, and achieve the competitive strength that will carry us into the next American century.
We should focus our efforts today on encouraging economic growth, investing in the future and giving power and opportunity to the individual. ”

“ It is very important to understand that the Wall Street crisis took us over the wall in terms of precipitating the severe recession we are in, but we have to remember that during those 8 years, as I mentioned earlier, the middle class was also shrinking. ”

“ We've had better managed, more competitive businesses; more productive working people; the entrepreneurial spirit of small business; a Federal Reserve committed both to low inflation and to economic growth ”

“ Thus, with alterations in the so-called Margin of Production, the natural85 allocations from Wealth to Wages would rise or fall as the Margin receded or advanced, whereas the natural allocations from Wealth to Rent would rise with the advances of the Margin and fall with its recession. ”

“ This week, the official announcement came that our economy has been in recession since March. And unfortunately, to a lot of Americans, that news comes as no surprise. Many have lost jobs, or seen their hours cut. ”

“ In a moment I'd like to tell you about our efforts this past week to cut the Federal deficit in order to keep the American economy growing and strong. First, though, I'd like to stress that very fact. Despite stock market fluctuations, despite all you may have heard to the contrary, the truth is: The American economy remains growing and strong. ”

“ The prime interest rate has been cut more than in half from a killing 21 Ѕ percent to 10 1/2 percent today. Industries like autos, housing, and steel, which had been brought to their knees by those terrible inflation and interest rates, are now regaining strength and calling back workers. ”

“ In view of the great actual contraction that has taken place in the currency and the comparative contraction continuously going on, due to the increase of population, increase of manufactories and all the industries, I do not believe there is too much of it now for the dullest period of the year. ”

“ Business, though feverish, was good; and many fortunes of our day had their origin in these excited business years of 1863 and 1864; when sales were easily made, most transactions were for cash, and nearly everyone engaged in trade or manufactures seemed to be getting rich. There must have been still considerable financial strength in reserve and, as the value of property depended largely on a stable government, ample funds for its maintenance would have been forthcoming in a supreme crisis. ”

“ Because whether we're looking at industrial production—which has registered the biggest 12-month increase in 7 years—or factory use—now at a 2-year high—or the drop in unemployment-which has been faster than in the past six recoveries—or inflation—which remains below 3 percent, the best performance since 1967—we're looking at an economy whose engines are humming with open track ahead. ”

“ I hold, therefore, that a new axiom should be added to the science of political economy; namely, that as the purchasing power of money increases, its income producing power decreases, and in about the same ratio; and conversely, when the purchasing power of money decreases, its income-producing power increases. In other words, when prices rise interest rises; when prices fall interest falls. ”

“ There can be no doubt, that if capital were forthcoming to execute, within the next year, all known and recognised improvements in the land of the United Kingdom which would pay at the existing prices, that is, which would increase the produce in as great or a greater ratio than the expense ”

“ Today inflation remains low, while interest rates are moderate, and prospects are favorable for growth to continue for a fifth year. So, you see, we did find that consensus for economic renewal and growth, a consensus that relied not on government but the dynamism of free peoples. ”

“ What is the matter with America, and what is the matter with the people?
This morning from the press we read that the New York stock market—to take but a single barometer—has fallen precipitously for many weeks; that throughout the East uncertainty and general fear prevail; and that the belief prevails that this major recession has been caused to no small degree by the New Deal policies in general, and the tax laws of the Roosevelt administration in particular. ”

“ That the great depression of business, the stagnation of trade, the ‘hard times’ which have prevailed during the past year, and which still prevail, have not been caused by an insufficient amount of currency, but mainly by the great falling off of the demand for all the products of labor, compared with the increased supply since the return from war to peace. ”

“ And, of course, inflation and government borrowing led to a fourth problem, the high interest rates that made it hard or impossible for people to afford the homes, the cars, the other purchases that keep our economy moving and provide jobs—the final problem. ”

“ The man who has a dollar in his pocket knows that speculators and gold-gamblers cannot, by some juggle, take five cents or ten cents from its value, in twenty-four hours, as they could a few years ago. The public burdens have been largely reduced. Our exports far exceed our imports, and our balance-sheet with the world shows an immense sum in our favor. The boom of business is heard in the land. The preachers of calamity are out of date. Commerce, industry, enterprise, capital, labor, all feel the impulse of substantial prosperity running through every artery of public and private activities. ”

“ Those towering interest rates which closed factory gates and industries like autos and steel, leveled the housing industry, and brought so many small businesses to their knees have now been knocked down themselves. ”

“ For example, a great influx of gold into the United States may take place as a result of a steadily favorable balance in international trade. Bank reserves may mount, discount rates may fall, and if all other circumstances happen to be already favorable, a period of increased industrial activity may follow. Demand for basic products will increase and prices will begin to rise. With the tendency of prices to rise, the general demand for labor will increase. Wage demands will follow, and all the conditions required to make the theory applicable are supplied. ”

“ The American economy is experiencing its longest period of sustained growth in more than a generation, with more than 15 million new jobs, the lowest unemployment rate since 1970, and the lowest inflation rate in more than 30 years. ”