If the US economy looks anything like the one in the UK, Americans should brace for the worst recession since WW II. That would probably mean unemployment of close to 15% and negative GDP growth which could last the better part of two years.
Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, tells the Guardian.
The US and UK economic dynamics are similar. Both are burdened by high commodities prices, troubled housing markets, and faltering employment. The UK depends more on imports of key products, especially agricultural goods, but there is not much sunlight to be found when the two country’s financial dynamics are set side by side.
The largest difference between the US and UK right now may be that high government officials in England have begun to speak out about the severity of the trouble. In the US, the heads of the Fed and Treasury still talk about a recovery which is just around the corner. They still think that they have the means to hold off a deep recession.
Someone is right, and based on most data, it is the British.
Douglas A. McIntyre
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