What’s the difference between a recession and a depression?

Posted by admin
recession
Sandra asked:


Recession is 2 quarters of loss? I know a depression is worse, but what exactly is the difference and does the US have a chance of expierencing one anytime soon?

Betty
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  • Whats the difference between (ecomonic) Depression and Recession. Seeking basic easy to understand definition?
  • Whats the difference between recession and depression?
  • What is the difference between a recession and a depression?
  • What separates an excessive recession from a minor depression?
  • When does an economic recession become an economic depression?
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    • This entry was posted on Thursday, April 30th, 2009 at 11:33 am and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    No Responses to “What’s the difference between a recession and a depression?”

    1. Doctor J Says:
      May 1st, 2009 at 1:43 pm

      A depression is defined as 25% unemployment. Your definition of recession is correct.

    2. misha81s Says:
      May 2nd, 2009 at 9:39 am

      I think 25% unemployment is what occurred during the Great Depression but I’ve never heard of depression being specifically defined this way. Generally is it just a more severe recession. I think if unemployment reached 20% it would be considered depression.

    3. THINKABOUTIT Says:
      May 4th, 2009 at 2:48 pm

      The Difference is that a Depression is simply just a Very Long & more Severe Recession.
      So it’s like a recession except that it’s a more severe recession & lasts much longer than an average recession.
      & could be, yes. The U.S does have a chance of experiencing a Depression soon.

      Let’s just hope the U.S won’t say : Solution?= War. Because if it does say that, either it’s going to be a horrible horrible conflict or the termination of the human race.
      After All Hillary Clinton already said that if she’s elected president she will Completely Destroy Iran, if Iran nukes Israel.
      So yes, WW3 it could be just around the corner.

    4. debijs Says:
      May 7th, 2009 at 10:50 pm

      I read a report where “economist” say the difference is “It’s a recession if your neighbor is out of work, it’s a depression if you’re out of work.” Guess that does put it in a nutshell!