How Bad is it?

Business Odyssey 037
The economy seems pretty bad. No doubt about it. Here's today's question: Is it worse than the media is telling us, better than the media is telling us, or are we hearing it "just about right." 

To be clear, I'm not asking so much about factual accuracy, but about emphasis. What do you think?

I tend to think that the economy, while bad, isn't quite as bad as we're being told. Case in point, the unemployment rate during the Great Depression got as high as 25% nationally in 1932. Today, the worst states are just now hitting 10%, the national number is somewhere a couple percentage points below that. 

I know the economy is bad…really bad in fact, but I just heard the word "depression" used this morning.

This interests me as Businessweek just published it's list of the 10 unhappiest cities in America. Here they are:

1. Portland, OR
2. St. Louis, MO
3. New Orleans, LA
4. Detroit, MI (which I would have guessed to be #1)
5. Cleveland, OH
6. Jacksonville, FL
7. Las Vegas, NV
8. Nashville, TN (a suprise)
9. Cincinnati, OH
10. Atlanta, GA

These cities are depressed, though some of these areas are weathering the economic storm.

Interestingly, the only California city to make the top 20 was Sacramento at number 12. I wonder why Sacramento? 🙂

Dr. Tim Spivey is Lead Planter of New Vintage Church in San Diego, California. He is the author of numerous articles and one book, "Jesus: The Powerful Servant." A sought after speaker for events, Tim also serves as Adjunct Professor of Religion at Pepperdine University. Tim serves as a church consultant, and his writings are featured on, Church Executive magazine, Faith Village, Sermon Central, and Giving Rocket.

Please note: I reserve the right to delete comments that are offensive or off-topic.

Share Your Thoughts

4 thoughts on “How Bad is it?

  1. I saw an article on CNBC today about all the guys who predicted the bottom of the market in the past 12 months . . . all of them were wrong. We just hit new lows yesterday and unemployment got as bad as 25 years ago (a little less than my entire life).
    It will be interesting to see how “bad” it gets – considering many folks were borrowing to afford their lives already. The way we live life is completely different than the last depression. News travels faster now (and is forgotten faster), so who knows how all this will be going down. But, yeah, I think it’s going to get pretty bad for some folks and I think churches will have great opportunities to re-evaluate who they are and why they exist.
    Oh, and Tim, if you want to learn to improve your returns . . .
    January I made 125% return, February 50%, and I made money yesterday as the market dipped to new lows. But, none of that was with 401k and mutual funds of course.

  2. I think the media does sensationalize the present day facts about the economy. That said, I am glad the media doesn’t too much time outside of the here and now. While the economy will always rebound and some recessions/depressions are longer than others, I think we will see more downside before the upside of the cycle.
    I believe Sacramento is in the top 5 metro areas for home foreclosure rates in the nation. That may be why they are so depressed.

  3. Just check your 401(k). My guess is that it is worth somewhere between 25-30% LESS than what it was 6 mos-1 year ago. In other words many people have lost 10 years worth of investments.
    It is bad enough.