There’s a big difference between the Great Depression and Economic times today

There’s a big difference between the Great Depression and Economic times today.

Entrepreneurs, small businesses will lead the recovery!

The American economic situation could get worse before it gets much better. But be assured, it will start turning around in the not-too-distant future.

Business advisor Jack Welch predicts that when the downturn ceases, the American economy will be stronger and sounder than ever.

Welch urges business people to talk about reasons for confidence. America is loaded with energy and creativity, he says. It’s a culture that exalts entrepreneurs, and they are the ones who drive every recovery.
Some doomsayers say this is the beginning of another Great Depression, but that won’t happen.

Government agencies created after that will hold off a deep depression.

The Federal Deposit Insurance Corp. insures bank deposits, which is basic to stabilizing the banking system. While 401(k) retirement plans have suffered, their value will rise again in the future.

Other disaster predictors say the United States will have a deep recession like the one in the early 1980s. The GDP fell in five quarters over a two-year period with the worst posting a 7.8 percent reduction. The prime interest rate was 21.5 percent; inflation was about 15 percent, and unemployment hit 11 percent. This time around, government programs will keep us far away from those numbers.

A number of negative thinkers say saving troubled banks will lead to socialism. Maybe that won’t happen either. The U.S. government has a history of handling interventions on a temporary basis. It bought stock in troubled banks before and was able to sell it a few years later.