Depression?

[snow hope]

There seems to be no single accepted definition of depression. Wheras recession is characterised or defined by two quarters of negative economic growth.

According to Wikipedia, a " depression is characterized by abnormal increases in unemployment, restriction of credit, shrinking output and investment, numerous bankruptcies, reduced amounts of trade and commerce, as well as highly volatile relative currency value fluctuations, mostly devaluations. Price deflation or hyperinflation are also common elements of a depression."

http://en.wikipedia.org/wiki/Economic_depression

umm, what is happening at the moment........ ?

Another definition I read, states "A depression is any economic downturn where real GDP declines by more than 10 percent."

and

another definition simply states "If a recession continues for a long time, the economy moves into an economic depression."

and

"Depression is an economic term used to describe a prolonged or severe downturn in economic activity. Depressions have a more moderate counterpart recession that is a normal part of the business cycle of a free market economy. Recessions that linger or are exacerbated by extreme circumstances become characterized as depressions, though the reclassification is subjective and by consensus of economic analysts."

This is an interesting article, titled "Warning that UK is on brink of depression"

http://news.scotsman.com/uk/Warning-tha ... 4888458.jp

Guys, I think we need to wake-up to where we are - imo we are on the brink of a depression.

I wonder when the media will (be allowed to) call this a depression?

[MisterE]

Well many of us have been saying this for years. I for one knew full on recession has been coming for a long time, being in the building game you feel its onset well before it happens, plus all this debt is crazy. I'm not 100% certain we'll hit depression though

http://money.aol.co.uk/jobless-numbers- ... 2172367797

I dont think lack of work is depression, what defines it for me is this;

Lack of supply of food
Lack of money to buy food as to not feel bad hunger
Queues to get your money out of the bank
Food aid Queues
Lack of Energy for heating, saved for cooking and lighting only
Heavy Police State
Rise in Organised Crime at the local level in larger towns n cities
Poor sanitation and a dulling of materials ie more people wearing worn clothes, cars looking dated, rubbish possibly building up, more vandalism and less local repairs.

[RenewableCandy]

I wonder, did the people of the 1930s refer to thei plight as a depression while it was happening? Or are depressions only (allowed to be) called such once they are over?

If the latter, then we may never have a depression

[DominicJ]

Wheras recession is characterised or defined by two quarters of negative economic growth.

Not really, it was just politicaly expediant to adopt that measure.
A 10% drop one quarter and 0.00% of growth the next isnt a recession
But
A 1% drop followed by a 1% drop is.

Governments can fiddle enough with their own spending and "seasonal adjustments" to stop 2 consecutive quarters, usualy.

"I wonder when the media will (be allowed to) call this a depression?"

2040?

[maryb]

I wonder, did the people of the 1930s refer to thei plight as a depression while it was happening? Or are depressions only (allowed to be) called such once they are over?

If the latter, then we may never have a depression

They mostly called it "the slump" at the time, I believe. They didn't wait to be told things were bad