Families and individuals are dealing with paying record-high prices on gas, mortgages and more. Meanwhile, the world is seeing a major war unfolding in Ukraine. That has left many comparing the current economic climate to the situation in 2008, when the world faced a major economic crisis leading to the great recession.
In 2008, the U.S. was involved in two wars, the housing market was running hot, and gas prices were over $4 per gallon at many pumps across the nation. Similarly, in 2022, we are seeing familiar issues. Firstly, the national average for unleaded gasoline is currently around $4.37 per gallon. Secondly,, the housing market remains heated coming out of the COVID-19 pandemic. Finally, the U.S. is offering support to the Ukrainian’s fighting off Russian aggression. So, it makes sense that some are asking, “In 2022, are we headed to a market crash and mortgage crisis like in 2008?”
Expert Analysis on the economy and potential for a new recession from ISEG
KSN, the NBC affiliate station serving most of Kansas, needed an economics expert who could explain the situation. As a result, they turned to the experts at the Institute for the Study of Economic Growth (ISEG). On May 10, 2022, KSN News Anchor Bret Buganski interviewed Dr. Ted Bolema, Executive Director of ISEG, on air for a KNS TV News report. Subsequently, Dr. Bolema help their audience understand the unique complexities contributing to the current economic situation.
KSN’s report focused mainly on record-high gas prices, the highest mortgage rates in the last decade, and the impact of the war in Ukraine. Dr. Bolema explained one key difference that makes 2022 even more treacherous than 2008: we’re seeing record inflation locally and across the nation. He also explained to Buganski why it might take some time to get the situation under control.
I am old enough to remember the last time we had a serious inflation problem, and it took a serious, a really serious early 80s recession to bring us out of it. We’re starting to hear now about people who are trouble making ends meet and renting out parts of their houses, rooms so that becoming more popular as people who own houses and are having trouble making ends meet are looking for an extra revenue source and people who don’t have housing are looking for a place to go.
There’s a lot of concerns about the general state of the economy in both years. Right now inflation is running like eight or nine percent and wage increases are more like five or six percent. We come through these things, I think it’s going to take a while, but we’re talking about 2008, and we recovered from that problem.
Watch Is the 2022 economy a repeat of 2008?
Watch Dr. Bolema’s entire appearance from May 10 below or at KSN News.