Richard Duncan contrasts our current economic problems with those of the 1930s. In his opinion, there is a distinct parallel and symmetry.
One of the major differences is the amount of government intervention now vs. then. While this intervention has lessened the immediate pain of the correction, it is unclear whether they have done anything to solve the fundamental problems. Furthermore, it is unclear whether they do not add to the distortions which will show up in a future, even bigger, crisis. As Duncan concludes:
Thus far, these measures have greatly mitigated the pain of the New Depression. However, the policies introduced to date have not resolved the causes of this crisis or even targeted them. Moreover, government resources, while vast, are finite. Government spending will not be able to carry the economy forever. Policymakers must aim to do more than simply perpetuate the existing global economic disequilibrium. So far, there is little indication they understand the origins of the crisis, much less how to permanently end it.
