We shouldn\’t really use this comparison

The UK economy is now 4pc smaller than it was at its peak in the first three months of 2008, having recovered 3.1pc from its lowest point in the third quarter of 2009. George Buckley, UK economist at Deutsche Bank, described it as \”worse than the position we were in at the same stage of recovery following the Great Depression\”.

Because the UK didn\’t really suffer from the Great Depression in the same way that some/many other countries did.

For we didn\’t have a 20s boom (Ta Mr. Churchill for that gold standard thing), thus the bust when it came was much smaller and by 1934 we were back above pre Depression GDP.

I\’m not trying to say that the 30s were all peace and riches in hte UK: just that the metnal image conjoured up by the \”Great Depression\” is of US style 25% falls in GDP that went on for a decade. Simply isn\’t what happened in the UK.

4 comments on “We shouldn\’t really use this comparison

  1. “For we didn’t have a 20s boom (Ta Mr. Churchill for that gold standard thing), thus the bust when it came was much smaller and by 1934 we were back above pre Depression GDP.”

    Didn’t the Americans have a gold standard too?

    And please make your mind up: are you in favour of gold-backed currency or not?

    Tim adds: Against, always have been. Never expressed even a smidgeon of support for a gold backed currency.

    And Churchill’s real error was not going back on gold but trying to go back on at the pre-WWI rate.

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