Recession? It’s More Like a New Plateau

In a recent column, Alice M. Rivlin, on The Times Board of Economists, offered some possible solutions to the recession, “Try a Bullet Approach Instead of the Shotgun” (Dec. 22).

She notes that the 1980s was a period when the whole country lived on borrowed money. No doubt about that.

Rivlin might also have pointed out that the savings and loan debacle ended up over-financing the building of more shopping centers, office buildings and hotels than the country can absorb in a decade. Now we are faced with large corporations such as IBM and General Motors restructuring and laying off workers by the tens of thousands. These are not temporary layoffs but moves toward permanently leaner operations.

The anticipated reduction in our military establishment will also add significantly to the unemployment problem.

It all adds up to a mighty upheaval. A recession is by definition a temporary falling off of business activity. It is doubtful if this can be called a recession. More likely, we have dropped to a realistic lower economic plateau and are going to be there for an extended period.

It’s time economists, politicians and the public recognize the realities. The problems facing us are more likely to be solved if we proceed from the correct premise.

BEN J. HELPHAND

Corona Del Mar