The global economic slowdown that began in 2008 threatens to last even longer than the Great Depression. Although the recession officially ended almost seven years ago, the recovery since has been disappointing, to say the least. Wages stagnate, the middle class shrinks, and good jobs are still hard to find. Most postwar recessions saw a small drop in GDP followed by a rapid return to previous trend line growth. Not this time. The US economy is $3 trillion (almost 20 percent) smaller today than projected in 2007.
And with the Chinese economy slowing, the stock market tanking, world trade shrinking, oil prices plummeting, deflation threatening, bond yields falling, and emerging markets collapsing, a recession this year looks more likely than a strong self-sustaining economic expansion. We might well fall into another recession without ever enjoying the boom