Ray Dalio, one of the biggest names in hedge funding in the United States (US), warned that the current US economic state is Depression-era symptoms.
For him, the most significant indicators that a new recession is on the way are several. Firstly, he is concerned about the state of debt that many young people find themselves into. Most young adults in the country who have attended a higher education institution have amassed enormous amounts of student loans, which now hangs over their future.
Secondly, Mr. Dalio expressed concerns about the ongoing trade war between the United States and China. According to him, the worsening of the political relationship between the two countries might be an indicator of an upcoming recession.
Last, but not least, the hedge fund owner mentioned that central banks are introducing ineffective policies when it comes to interest rates and deposit accounts. According to him, this is one of the most significant Depression-era symptoms in the current US economy.
The Great Depression is probably the single hardest period of time in American history, and it had a negative impact on the whole world. Considering the fact that nowadays, politics and economies are much more interconnected, a new recession in the United States would mean a global economic crisis.
The Depression-era symptoms Mr. Dalio mentions are just a few of the significant economic obstacles before the United States. However, if the country does not react on time, the consequences will be of colossal magnitude.
Mr. Dalio has also speculated that central banks are adopting measures, which will submerge the country into a deflation mode. This is a dangerous prospect, as many still remember the repercussions of the Great Depression and the recent 2008 mortgage crisis.
What could this mean for US public schools?
Those of the Depression-era (1930-1940) recall that prior to the Great Depression, most children in rural, or countryside, areas attended school, but during the Great Depression, many schools closed, leaving children without a school to attend. Many quit school by eighth grade to work on the farm full-time.
Higher education remained out of reach for most Americans as the nation’s universities saw their student bodies shrink during the first half of the decade. However, high school attendance increased among males to ascertain greater chances of employment.
Due to developments in technology, anyone with Internet connections and requisite skills can easily find outsourced jobs from different online providers. Perhaps, now is the best time to get an online education and get connected.
A lot of today’s youth can prosper if they have the knowledge-base, inclination, and competitiveness to slug it out in the online arena. The proverbial pot of gold is not the exclusive privilege of the rich and amply educated.
The very symptoms which spawned depression could be the pivotal point for embracing a solution.