Robert Reich: This recession different from others

Is he right?

WE’RE sliding into recession, or worse, and Washington is turning to the normal remedies for economic downturns. But the normal remedies are not likely to work this time, because this isn’t a normal downturn.

The problem lies deeper. It is the culmination of three decades during which American consumers have spent beyond their means. That era is now coming to an end. Consumers have run out of ways to keep the spending binge going.

The only lasting remedy, other than for Americans to accept a lower standard of living and for businesses to adjust to a smaller economy, is to give middle- and lower-income Americans more buying power — and not just temporarily.

On an intuitive level, I agree with Reich to the extent that Americans are going to be hurt by the housing bubble more than they are by the dot com bubble. This one is hitting us where we live, literally. However, I have no idea if he is correct in his assertion that this recession is different in kind as well as magnitude from previous recessions.