We're at a very dangerous moment. The May unemployment report showed only 69,000 jobs created, all part-time, and only half of what's needed just to keep up with the natural growth of the labor force. The eurozone is headed for collapse and much of Europe is in recession. China, expected to lead world recovery, is slowing, as is India. We may never have escaped the Great Recession, but if we did we're on the edge of another downturn. Put another way: The Great Depression went on for more than a decade and had recessions embedded in it, like tornadoes in a hurricane.
Faced with this, the institutions and practices that were built up carefully to mitigate just such an event are either gone — Glass-Steagall — or in a free-fall of legitimacy. The European Union. A peaceful, strong Germany. A global system of free trade. An economy where the pursuit of profit, monopoly and plutocracy is offset by checks and balances that serve the common good. The paralyzed and compromised Federal Reserve. The "fixed" and hamstrung-by-extremists Congress. And, I am sorry to rub salt in your hopes, President Obama. Economic conditions are not as bad as they were in the Depression. Yet. Leadership is worse, at least among American politicians. Hardly any will even tell us the truth about our actual circumstances.
History offers a valuable "fund," as George F. Kennan put it, upon which we can draw to understand our present circumstances and perhaps plot prudent responses.
