This post by Krugman inspired me to take a look at how the industrial production index has fared lately. At first glance, the recent drop is pretty massive:
But looking at it on a log scale tells a very different story:
Krugman makes the point that the plunge paused in 1931 before resuming, and that the worst is not necessarily behind us. I make the point that relative to 1931 we’ve barely even started…