Could Be A Lot Worse, But It Was A Lot Worse In 1980s

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Could Be A Lot Worse, But It Was A Lot Worse In 1980s

By Mark Perry on January 19, 2009 | More Posts By Mark Perry | Author's Website

Consider the following comparisons of key US economic variables today to the peaks for those variable in the early 1980s (see graph above):

Prime Rate
1981: 20.5%
2009: 4% (Current)

Inflation
1980: 14.8%
2008: 0% (December)

Unemployment Rate
1982: 10.8%
2008: 6.5% (December)

30-Year Mortgage Rate
1981: 18.5%
2009: 6.04% (Current)

Real Gas Price (2008 dollars)
1981: $3.45 per gallon
2009: $1.82 (Current)

Bottom Line: When it comes to the current state of the economy, it could be a lot worse. It WAS a lot worse in the early 1980s, by the five key economic variables above: prime rate, inflation, jobless rate, 30-year mortgage rate and real gas prices.

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