What separates an excessive recession from a minor depression?

Question

The news and economists keep telling us we're going to have an excessive recession; but no one is willing to call it a depression. So what is the defining line?

Answer 1

Best Answer - Chosen by Asker

Depends on who's being affected . An who's reporting on it .

Asker's Rating:

Asker's Comment:

I know the main difference between the two, but the thin line between the two hasn't been defined.

Answer 2

Recession is defined as a decline in the GDP (Gross Domestic Product), or a significant decline in the general economy. Several factors can contribute to an economy heading into a recession. Areas such as decreased GDP, slowing of business growth, decrease in housing prices, and high unemployment rates are all factors that point towards a country’s economy sliding slowly but surely into a recession. All of the previous factors are very real, and affecting the U.S. with no signs of ceasing anytime soon.

A depression is defined as a severe, strong decline in the economy that can last for several years. It may sound a lot like that of a recession, but the words that ring out loud are that it can last for several years. Imagine that from now until the year 2018 that in the U.S., people continued to lose their jobs, their homes, gas continued to rise, and the economy spiraled downward. This is what was felt during the Great Depression of 1929. During the Great Depression, unemployment climbed rapidly and floated around 25% while wages fell close to 50%. Although we are not anywhere near those numbers currently, we must remember that it is still a reality and has happened to the U.S. before.

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Source(s):

http://recessionsmart.blogspot.com