[simonh]

It's the same with economic recessions. For those impacted through losing their job, defaulting on their mortgage, etc the impact is devastating, but if you keep your job and live a little more frugally the impact can be relatively minor. The pain is very unevenly distributed.

[TMWNN]

To put another way, the peak unemployment rate in the US during the Great Depression (and of all time) was 21% early in the Roosevelt administration.

That meant that 79% had a job. Yes, yes, that doesn't mean that all 79% could pay all their bills, etc. That does mean, though, that a large majority of Americans saw their paychecks go further in terms of lower food and housing costs.