(IN THE SIMPLEST OF TERMS, PLEASE) WHAT IS THE DIFFERENCE BETWEEN A “RECESSION” AND A “DEPRESSION”?

Economics was never my subject.

{ 13 comments… read them below or add one }

Mike C March 23, 2010 at 9:58 pm

It’s fuzzy. A depression is just a deep recession that goes on for a long time.

anthonyky March 23, 2010 at 10:51 pm

Think of a recession as a push and a depression as a shove.

Pete March 23, 2010 at 10:57 pm

Recession is a countries gross domestic product reducing for two quarters, and a depression is a recession that last for a longer period of time, like over 8-12 months. Also a depression also has abnormally high unemployment rates, and severe restriction of credit.

L March 23, 2010 at 11:56 pm

yeah it’s like a deep recession. you know like the great depression. yeah you know. but like right now i would say we’re in one well in the US if thats where you are. so from a recession it can either get better and we can head for a ?procession? i think it’s call but i know that’s when everything starts to get better buuut we could get worse and head into a depression.

mvpunker07 March 24, 2010 at 12:02 am

a recession is when there is 2 consecutive quarters of losses…or something of that nature.

jeff March 24, 2010 at 12:48 am

don’t sweat the difference just reduce spending and pay off your credit card debt.

geeez March 24, 2010 at 1:32 am

A recession is when you go window shopping and keep your wallet closed, a depression is when the windows are closed and your wallet is empty.

CherryCherie March 24, 2010 at 2:30 am

Oh wow…A depression needs prozac and a recession needs tequilla…
Am I right?

Regwah March 24, 2010 at 2:56 am

It was never mine either.
After watching this it should be clear as mud.

http://www.youtube.com/watch?v=NIfH0vY2ANA

livinforever March 24, 2010 at 3:46 am

Simplest definition of a recessoin is two consecutive quarters of declining Gross National Product (GNP). The Business Cycle definition is more complex. A depression happens when GNP delines by 10% or more over a period of time. These are the simplest definitions. However, the answer cen be complex depending on the yardstick used for mesauring declining activity as GNP is but one of the macro indicators of economic health.

Der Kerzenschein March 24, 2010 at 4:00 am

Recession effects us, Depression effects the richy rich corperations and banks.

pastorbk March 24, 2010 at 4:02 am

Recession is an economic slow down and down turn. Depression is an economic explosion like the Great Depression of the 30’s.

Kamikaze Watermelon March 24, 2010 at 4:34 am

Economics is a very complicated topic, so if you really want the full answer, just take 5 to read this. I’ll try to be as brief as possible

The way economics work is that things go up in price overtime, generally products get more expensive than services. This process is called inflation. Economics allows inflation till the point where nobody wants to pay for anything, and then people start losing jobs due to the expense to keep them. This is called a recession. When things start to get normal again, inflation starts again. And this keeps going. That is generally what happens overtime, and recessions happen about every 5-10 years.

There have only been two true depressions since 1901, and those are The Great Depression (1924-1930) and The Global Financial Crisis which has been going on since 2005. A depression is just a term for when the process of inflation lasts for longer than expected and then the interest rates really cut down low. In our current depression, the rates are tipped to dive lower than how they did in 1964 when the Reserve Bank cut it to 2.4%.

Queensland Treasurer, Andrew Fraser has been tipped off by Kevin Rudd about a second economy bonus for Australian accounts to help with when the interest rates do come down. However, Australian economists predict The Global Financial Crisis will end between the year 2011 and 2016.

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