Last week bore news of another upcoming recession in the Eurozone, according to the speculations of numerous economists. However, some believe the recession has never actually ended.
Peter Rupert and Thomas F. Cooley, two U.S. economists, explain that Europe’s economies have remained low and struggling to regain momentum after the initial crisis in 2008. Germany is the one exception. They add that the United States, on the other hand, reestablished all their lost ground by 2011.
In other words, Europe may be heading towards the far end of a lost decade. The wasted potential in the region has impacted investments in education, slow or stalled research and failed businesses and careers.
“There are larger implications that people don’t think about. There is a huge decline in human capital.”
The beginning and end of a recession is hard to identify. Definitions vary greatly, but all agree that some significant factors include unemployment, industrial production and investment.
Officially, the European recession ended in the third quarter of 2009 according to the Euro Area Business Cycle Dating Committee. They have yet to discuss today’s situations, but all agree that it is rough.
High Frequency Economics’ Carl Weinberg said:
“This is more than just a regular business cycle. I can’t think of a time in the postwar period in any major industrial countries where have had a downturn resume before the previous cycle was over.”