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Why does the media insist on calling current times recession or double-dip recession - isn't it really a depression?


Asked by tasches at 7:29 PM on Aug. 16, 2010 in Politics & Current Events

Level 48 (298,202 Credits)
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Answers (16)
  • A recession is when your neighbor loses his job; a depression is when you lose your job.

    I was taught a depression is any economic downturn where real GDP declines by more than 10 percent. In Jan 2010 we were about -3% -4%.... They are calling it a double dip because the Q2 report isn't looking as good as they anticipated. They expected it to drop to -4% then jump back up to -1.9% in Q2 but it looks like it's probably going to dip back into -4%s or worse in 2011.


    Answer by Crissy1213 at 8:28 PM on Aug. 16, 2010

  • nope. things were alot worse during the depression

    Answer by princessbeth79 at 7:31 PM on Aug. 16, 2010

  • We are at what the weak dems are now calling "the new normal". That is their way of trying to avoid any blame.

    Everything they did to "stimulate" the economy was a giant FAIL and they don't want to accept the blame.

    Answer by Carpy at 11:34 PM on Aug. 16, 2010

  • No, we are no where near what is considered a depression.


    Answer by JeremysMom at 7:30 PM on Aug. 16, 2010

  • Anybody that says we're in a depression needs to read a history book.

    Answer by Laura2U at 7:35 PM on Aug. 16, 2010

  • I agree with JeremysMom, in 1919, right after WW 1, we had 19% unemployment, 19% interest rates and 19% inflation. In 1920 we got our economy back when the government did nothing. They lowered the tax rate from 76% to 52%, still high, but enough to make private people start up companies. Nobody talks about the depression that was stopped because of these actions, and everyone still thinks the roaring 1920's just happened. We are not near that type of crisis, yet. If we don't stop spending like crazy in DC, we will be in trouble. I like the song lyric that says: "I never got a job from a poor man." We need to wake up and smell the coffee.


    Answer by Joeygoat at 7:36 PM on Aug. 16, 2010

  • Joeygoat,

    You forgot that that government cut spending too.They cut spending  and taxes, that is what gave us the roaring 1920's 


    Answer by Natesmom507 at 1:53 AM on Aug. 17, 2010

  • Yes, things were a lot worse so they don't want to go that far. Let's pray we never do go there, or we're really in the dumps.

    Answer by MyAngel003 at 7:35 PM on Aug. 16, 2010

  • I don't really know what the parameters for a depression are but right now our worst problem is unemployment.

    Answer by itsmesteph11 at 7:42 PM on Aug. 16, 2010

  • Recession: The BCDC Definition
    The Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) provides a better way to find out if there is a recession is taking place. This committee determines the amount of business activity in the economy by looking at things like employment, industrial production, real income and wholesale-retail sales. They define a recession as the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out. When the business activity starts to rise again it is called an expansionary period. By this definition, the average recession lasts about a year.

    I agree with Crissy's definition for a depression^

    Answer by Sisteract at 9:02 PM on Aug. 16, 2010