Why Did The Great Recession Happen?
If you’ve ever looked at the suggested reading list on my web site, you know that I read some stuff that’s not related to business and certainly not to our industry. Not directly that is. But I think it helps me understand the environment we operate in and perhaps get a perspective I wouldn’t otherwise get.
William R. White is an economist who was recently awarded the apparently very prestigious Adam Smith prize. He presented a lecture when he accepted the prize called, “Ultra Easy Money: Digging the Hole Deeper?”`He talks about the causes of The Great Recession, the policies used to counter it, and some of the significant downside of continuing those policies this long. It’s thirty pages, clearly written, and has no math or charts. You can find some books (including on my web site) that deal with the topic, but they are just a bit longer than 30 pages.
This is an academic paper, and Dr. White won’t have you on the edge of your seat gripped by the plot by page four (Spoiler alert- the central banks and politicians did it). But it’s just thirty pages double spaced with big type, and if you read it, you will learn things you never hear in the mainstream media. And you certainly didn’t hear them during the elections. It raises issues every politician must avoid, because if they brought them up, they’d never get elected.
Yet, they are critical issues and tell you about the long term, macroeconomic environment you are going to be doing business in. Here’s the link.