A decade ago, the world economy crashed. Fellow news junkies have no doubt noticed the surfeit of news articles reflecting back on the brutal unfolding of the Great Recession. For me, the Great Recession is such a defining chapter in my generation’s story that these pieces prompt vivid “where were you when…” remembrances of September 2008.
Watching from afar
I was in Hawaii at the time, and it was surreal.
I had been awarded a research sabbatical for that fall term. But before digging into my sabbatical work, I visited Maui for two weeks to help out and support a dear cousin who had lost her husband to cancer.
As we sorted through the many details that follow the passing of a loved one, regular TV programming was constantly interrupted by news coverage of the rapid economic collapse. It quickly became clear that this was no ordinary downturn, and that the world’s economic and financial structures were at risk of breaking apart.
To watch this unfold from one of the most beautiful places in the world, with a six-hour time difference between the East Coast and Hawaii, made for a disconnected and strange experience. You step outside into sunlight and palm trees and locals going about their business. You then watch the television news, with a lot of normally cool characters looking visibly shaken and fearful.
So here we are, a decade later, looking back at the Great Recession and all the human and financial carnage it exacted. It would be nice to assume that we’ve learned from the massive debt bubbles and casino-style investing that helped to bring down the economy in 2008, and that somehow we’ve managed to reclaim those losses.
But there are two stark realities facing us today: First, although a booming stock market, record profits, and executive raises have fueled the net worths of the wealthy and upper middle class, a lot of middle-class, working-class, and poor people have never recovered from the last recession. As Alana Semuels wrote in “The Never-Ending Foreclosure,” a December 2017 piece in The Atlantic:
In the big picture, the U.S. economy has recovered from the Great Recession, which officially began a decade ago, in December of 2007. The current unemployment rate of 4.4 percent is lower than it was before the recession started, and there are more jobs in the economy than there were then (though the population is also bigger). But for some, the recession and its consequences are neverending, felt most strongly by families . . . who lost jobs and homes. Understanding what these families have experienced, and why recovery has been so evasive, is key to assessing the economic risks the nation faces. Despite ever-sunnier economic conditions overall, the Great Recession is still rattling American families. When the next economic crisis hits, the losses could be even more profound.
Secondly, a lot of knowledgeable people are saying that we are once again on the brink of a significant economic downturn. I won’t even attempt to link to the array of opinion pieces and analyses making this point. Just search “next recession,” and you’ll see what I mean. These assessments are coming from liberal, moderate, and conservative economists alike. Their biggest question is how bad will it be. It’s safe to say, however, that especially for the millions of people who never recovered from the last recession, the added punch will be extremely hard.
I know I’m sounding like a doomsayer, but I think we’re in for another rough go of it. My biggest question is whether we’ll come out of the next recession with a genuine civic and political commitment toward building an economy that works for everyone, not just for the wealthy and well-to-do.