In modern economies, the effects of government policies show up first and fastest in employment.

FORBES: Our Big, Fat Greek Bankrupcty

Nonetheless, American monetary policy strategy is less transparent and more personalised than in many other modern economies.

ECONOMIST: The Federal Reserve

This points out a fundamental fact that is key when considering the solution to our current woes: in modern, developed capitalist economies, recessions are not a function of the nation being unable to supply the goods and services desired by consumers.

FORBES: The Great Recession: How We Got Here (and How to Get Out)

But that still leaves the problem of smoothing production at the factory to preserve the economies of scale, which even in modern scaled-down plants require a throughput of about 250, 000 cars a year.

ECONOMIST: Fighting back

For much of the financial crisis that started in 2007, Germany remained strong and held the envy of modern economies around the world.

FORBES: Will Germany Shatter Europe Again?

In combination, all of these factors will prove irresistible for most if not all modern economies.

FORBES: The Perils Of A Cashless Society

After 1800, however, living standards began to increase, first in the West, as stagnant economies transitioned to the industrial revolution and to a period of modern economic growth where living standards double every 35 years.

FORBES: Prof. Edward C. Prescott On China