Originally Posted by
Mike Alexander '59
Since institutions reflect values it seems to be that when the values are first being perceived to be out of sync with the times, the same would be true for insitutions. That is, we do not have to wait for the institutions to independently get of out sync...
If one looks at the Business Cycle Expansions and Contractions at
NBER, one can see that from the 1850s to the 1930s the economy spent over fifty percent of the time in either recession or outright depression. Given that the percieved "spark" of the 1929 Crash supposedly illuminated a broken institution, one might ask a salient question: What else is new?
Likewise, since 1933 the U.S. economy has been in recessions less than thirty percent of the time, and of substantially less severity. This indicates to me that this "broken institution" stuff is nonsense (something much deeper is at work, here?), and that each cycle maintains a high degree of independence from the cycle that proceeded it.
Whatever.