Multimedia Directory

Approximately 90 minutes

Speakers:

• Professor Anthony Corrado, Government Department
• Professor David Findlay, Economics Department
• Professor Emeritus Henry Gemery, Economics Department

Professors speak about the economic situation in the United States leading up to October 9, 2008.  The discussion came in the midst of the “economic crisis” that began late summer of 2007 and intensified until the country was on the brink of panic in mid-October of 2008.  As several large banks declared bankruptcy, Wall Street indices fell to unprecedented levels, and the international economy began to fall into crisis, there were whispers of the possibility of the next Great Depression.  The economic competency of the Bush administration was called into question, and with the upcoming 2008 election, people anxiously awaited a change in economic policy.

In order to smooth out the hearsay of media, propaganda, and gossip about the current economic crisis, three Colby professors gathered to speak to the school in order to shed light on the situation.  Professor Emeritus Henry Gemery is a professor of Economics, specializing in the history of the American economy.  He addressed the concern that we could be entering the next Great Depression, pointing out the similarities and differences between our financial institutions and experience level now versus in the late 1920s and throughout the 1930s.  He concludes that this current situation will not fall into another Great Depression because we have institutions in place to prevent just such an occurrence, put in place in response to the Great Depression.  He argues that we also have a lot more experience in the behavior of financial markets and how certain actions affect the economy.  Professor David Findlay is a professor of Economics, specializing in patterns and processes of macroeconomics.  He addressed the question of how we arrived at this crisis, what it actually is, and what we may look for in the near future.  He points out the problems with the sub-prime lending practices of banks and individuals as the eventuating cause of the crisis.  He says that no one really knows how to fix the problem because it has never happened before.  Nonetheless, we have experienced, prudent people acting as economic advisors and head of the Federal Reserve.  Professor Anthony Corrado is a professor of Government, specializing in American politics and American elections and campaigns.  He illuminated how the current economic crisis is affecting the presidential campaigns and how Obama and McCain are positioning themselves with respect to the current problems.  Professor Corrado also talked about how politicians frame the economic crisis in comparison to how economists approach these issues.