My friend keeps calling it a depression. I tried correcting her its a recession. Whats the difference? Isn’t a depression worse?
Repossession
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when the politicians dont want to admit it is that bad, they call it a recession.
depression is worse. in a recession the rich still make money. gas prices go up even though crude prices come down, because of rabid wombats attacking oil pipelines in Guam, or whatever the reason of the day might be.
the rich also make money through government bailouts. notice how obama is not asking what happened to the first bailout? he knows it all went to executive bonuses for his rich buddies.
in a depression, no one makes money.
I’ve suffered from depression for 15 yrs and I take medicine for it
an economic depression is far worse than a recession - google the terms - somewhere on the ‘net you’ll find definitions
A recession is a downturn in economic activity, defined by economists as at least 2 consecutive quarters of a decline in a country’s gross national product. A depression is an economic condition characterized by falling prices, reduced purchasing power, an excess supply over demand, rising unemployment, accumulating inventories, deflation, plant contraction, public fear and caution and a general decrease in business activity. Yes, a depression is econmically worse than a recession.
Recessions used to be called depressions which used to be called “panics”
It is merely semantics.
The difference between the two terms is not very well understood for one simple reason: There is not a universally agreed upon definition.
The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.
Before the Great Depression of the 1930s any downturn in economic activity was referred to as a depression. The term recession was developed in this period to differentiate periods like the 1930s from smaller economic declines that occurred in 1910 and 1913. This leads to the simple definition of a depression as a “recession that lasts longer and has a larger decline in business activity.”
So how can we tell the difference between a recession and a depression? A good rule of thumb for determining the difference between a recession and a depression is to look at the changes in GNP. A depression is any economic downturn where real GDP declines by more than 10 percent. A recession is an economic downturn that is less severe than that.
So you’re right. A depression IS worse.
Best definition I’ve heard is “A recession is when you lose your job. A depression is when I lose mine.”
Meaningless terms with no “Official” definitions.
During the Hoover Depression (actually it should be blamed on Harding, Coolidge and Hoover) unemployment was 24%.
Today, when somebodies unemployment insurance payments run out, they are no longer figured into the unemployment total. Here in Calif., they will admit to >10% unemployed. There are more than that who no longer get unemployment insurance. Grand total is somewhere between 20% and 30%.
What is really shameful is that the last depression had the same root causes as this one. Deregulation and trickle-down economic bull. Will Rogers noted in the last great depression that as heavy as gold is, when you spread it out on top, it stays there.