6 months ago I looked at how many times the term “economic crisis” and “økonomisk krise” were mentioned in the most popular newspapers of the USA (New York Times) and Denmark (Jyllands-Posten) respectively. I’m proud of this entry because it’s one of the most visited. So this summer I was kind of interested to see a comparison looking at the first 6 months of 2009.

It is important to notice that I have multiplied times 2, the corresponding figure for the first half of the year. So the 2009 “result” will actually be the final result, if they mentioned the term exactly the same times between and July and December, as they have done from January to the end of June.

So this is how it looks the agreement of both newspapers. Comparing it with the 1994-2008 graph You can draw your own conclussions.
The term "economic crisis /økonomisk krise" mentioned in New York Times and Jyllands-Posten respectively (1994-2009). Note that 2009 is only based on the first half of the year.

Now I’m really busy, trying to write a paper for a journal before my wife gives birth in the next days, but whenever I need a break from the paper, I will add the consumer confidence chart.

It’s always nice to stop by Creative Class by the Richard Florida squad. Following links I hit the “How the Crash Will Reshape America” published in the Atlantic in the March 2009 issue.

As I have said sometimes, I like Florida. It seems to be kind of funny that all academics related to the discipline of economic geography say “Florida’s ideas are good, BUT…” It seems that they have to say that in order to show their academic credentials.
So, I of course have to say the same. However, for this last document I admit I have very little objection or none.
He clearly explains the change of economic paradigms and how the American cities have to evolve. He quotes Schumpeter, Jacobs, Romer, Glaeser, Lucas, Krugman among some of the key fellows. His final proposals to change the housing market towards a more renting instead of owning are bold. Which is exactly what the U.S., and great part of the world needs now. Not so much Denmark, but this will be especially fit for my home country Spain.

The solution begins with the removal of homeownership from its long-privileged place at the center of the U.S. economy. Substantial incentives for homeownership (from tax breaks to artificially low mortgage-interest rates) distort demand, encouraging people to buy bigger houses than they otherwise would. That means less spending on medical technology, or software, or alternative energy—the sectors and products that could drive U.S. growth and exports in the coming years. Artificial demand for bigger houses also skews residential patterns, leading to excessive low-density suburban growth. The measures that prop up this demand should be eliminated.

If anything, our government policies should encourage renting, not buying. Homeownership occupies a central place in the American Dream primarily because decades of policy have put it there. A recent study by Grace Wong, an economist at the Wharton School of Business, shows that, controlling for income and demographics, homeowners are no happier than renters, nor do they report lower levels of stress or higher levels of self-esteem.

Once again I have to say, thank you Richard!

The term "economic crisis /økonomisk krise" mentioned in New York Times and Jyllands-Posten (1994-2008)

The term "economic crisis /økonomisk krise" mentioned in New York Times and Jyllands-Posten respectively (1994-2008)

(See updated graph til 2009 here)

Looking at the graphs above and below, it is shown a clear correlation between the fall of the consumer confidence ( 1998 and 2008 ) and how many times the term “economic crisis” is mentioned in the Danish and American press. All this seemed obvios, but I think it’s interesting to see it.

Danmarks Statistik

Consumer confidence indicator in Denmark ( 1994-2008 ) Source: Danmarks Statistik

This morning I wanted to see the updated consumer confidence in Denmark. By the way it’s a amazing that Danmark Statistik, the governmental statistic office,  gives you THIS free data since 1986.  Anyways, I’m not an economic historian, so I’m only looking at the last 15 years, before the internet bubble.  I wondered what happened in 1998, why the consumers got scared. I wasn’t very sure.

Therefore I looked at the last 15 years for the word “economic crisis” in the archives of the New York Times the most widespread newspaper in the U.S. and it’s counterpart in Denmark, the Jyllands-Posten  (this one only had archives online from 1996). The “hypothesis” would be that there is a strong relationship between these two factors (there is a debate about the independence of these particular variables; that is the  self-fulfilling prophecy, but this is another story) . The point here is that there is a strong relationship between these two variables. It’s also interesting to note the relationship between the U.S. economy and in this case the Danish one.

The big two drops of consumer confidence are in 1998 and in 2008. The thing is that I don’t remember exactly what happened in 1998. The dot com bubble was about to burst, but I don’t remember what else happened.

Oh, yeah, I entered the university…


update: This is what happened