Harvard Economic Historian Says, ‘We’re in a depression’

Two big-time economic thinkers duked it out in a debate about the causes of the Recession Tuesday night. The event was sponsored by The Aspen Institute and Roosevelt House, Hunter College’s Public Policy Institute. Jeff Madrick, a Senior Fellow at the New School’s Schwartz Center for Economic Policy Analysis and regular contributor to the New York Review of Books, faced Niall Ferguson, Laurence A. Tisch Professor of History at Harvard University and William Ziegler Professor of Business Administration at Harvard Business School. Moderator Brian Lehrer, host of the Brian Lehrer Show, asked tough questions about the economic crisis.

After the debate, attendees had the chance to ask questions of their own. One audience member asked when the Recession would be over. For the first time during the evening, the two men largely agreed.

Ferguson took the question first. “We’re not in a recession,” he said. “We’re in a depression. I would say it’s a slight depression, rather than a Great Depression, but we’re looking at five years of subprime growth.”…

Redux: Give Us a Hero, Preferably in Tights

Lynn Parramore looks back at the Great Depression to see the path ahead.

Hard times were made for heroes. We want stories of the fearless, the bold, and the incorruptible. We crave somebody who stares danger in the face and stands up to the bad guys. If those bad guys are nasty pirates straight out of a storybook, then so much the better.

That’s why the sea captain Richard Phillips, who offered himself to Somali pirates to protect his crew, is hailed as “Captain Courageous.” And it’s no surprise that the daring Navy SEALS who felled his captors are celebrated with glowing media profiles, their valor and marksmanship like salve in wounded national pride. Score one for America!

After saving the lives of 155 passengers with his spectacular Hudson River landing, Captain Chesley “Sully” Sullenberger got his own superhero nickname…

Liberty is Burning

No matter how many homes go into foreclosure, the sun still shines in St. Petersburg, Florida, where most of 18-year-old Cameron Cottrill’s peers don’t have a clue about what’s going on with the Recession. “But they do have Obama Mania,” he admits. A few, though, are seriously concerned. “Some have lost jobs,” says Cameron, “and so have their parents.” These young people worry because “they don’t see any real ‘change’ coming any time soon.” Like Cameron, they are trying to learn about current events, hoping to understand what they need to do for the future. And nobody really seems to have the answers…

Lemonade Makers: Elizabeth McGowan, Career/Life Coach

Profiles of people who turn economic lemons into lemonade.

Elizabeth McGowan
New York, Upper West Side

Before recession: Corporate Technology Project Manager at Morgan Stanley

Now: Career/life coach at McGowan Coaching, where she helps others discover their passion and realize their potential through periods of transition in career and relationships.

When did you notice a shift in the economic climate?

In September 2007, layoff rumors were circulating. Around this time, I experienced a shift in my thinking about how fulfilled I was as a Project Manager. After attending a coaching class, I identified my talents through assessment, discovery, and review of my current path…

Recession Lexicon: Slayoff

A particularly cold-blooded method of laying off employees, such as breaking the news on a company blog, leaving a note in an employee’s chair, dispatching a mass email, or sending a certified letter to a worker’s home that says, “Do not come back to the office…”

Do-it-Yourself Water Garden

My kindergarten teacher had a favorite slogan: Every day is do-it-yourself day. To make your own beautiful backyard water garden, all you need is a little elbow grease and Miss Pierce’s can-do spirit. It’s not necessary to call in the pros: You can save money and turn your outdoor space into a peaceful refuge with just a few simple steps.

Location, location, location:
You’ll need a level spot that’s not too shady or too sunny. Aquatic plants have different light needs, but most seem to like at least five hours of sunlight per day. Too much sun may cause algae problems…

I Want My IRA

In 2001, I made my first contribution to a Roth IRA. I felt very proud of myself at the time. Look at me! I’m responsible. I deserve a gold star. Everybody was raving about the Roth as a great way to save for a home, or your kids’ college tuition, or retirement. A Roth is different from a traditional IRA because the money you contribute (up to a maximum of $2,000 a year per person if you meet certain income qualifications) isn’t tax deferred. People like the Roth because you can withdraw both your money and earnings tax free. You can take out your own money (your original contribution) any time you want, for any purpose, without paying taxes or a penalty, because it’s already been taxed. Plus, your total (contributions + earnings), can be withdrawn without any penalty regardless of your age if you use it for certain approved purposes, like college or $10,000 towards your first home.

All of this sounded fine and dandy to me, so I dutifully made my contributions, be them ever so humble. As time went on, I took the advice of my accountant to distribute Roth money to various “growth” funds, such as Calamos…

Screwed: 300 in Peoria School District

A daily review of the employment fallout around the country and the world.

Peoria school district has approved layoffs of 300 teachers…Deere to can 160 workers at its Des Moines Works facility…DHL Express said to be getting rid of another 120 employees in New York…Portland-based Hampton Affiliates to temporarily close lumber mill and will pinkslip 85…Roanoke City school system will cut 58 jobs, including teachers…

Recession Briefing 4.8

What you need to know today to survive and thrive in the recession.

Recession hits baby-making market: Charitable giving has cooled since the recession hit, but egg and sperm giving is hot, hot, hot. (USA Today)

Recession Fuels Readers’ Escapist Urges: Sales of romance novels are outstripping most other categories of books and giving some buoyancy to an otherwise sluggish market. (NYT)

Recession Start-Up Snags And Solutions: As layoffs mount, the number of start-ups is on the rise too. (Forbes)

If you come across a good article or blog post about the recession pass it on.

Lemonade Maker: Greg Stallkamp, Fitness Entrepreneur

Profiles of people who turn economic lemons into lemonade.

This week’s Lemonade Maker: Greg Stallkamp

Location: Chicago

Before recession: Financial Consultant

Now: Founder, Holosfitness.com, a social networking website for the fitness community.

When did you notice a shift in the economic climate?

I first noticed clients were planning to scale back their budgets at the end of 2007. By the beginning of 2008, clients were already starting to cut back in terms of head-count and use of outside consultants. My firm saw several clients leave by February and March of 2008. Basically, I saw the writing on the wall and decided it was time to leave.

What was your “aha” moment?

From a needs standpoint, I realized that there was a need for the services offered by our website several years ago. There simply was no way for regular individuals who practiced active lifestyles (in terms of sports and fitness) to track their progress…