Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … Economic Depression and a Recession
In 1978 Alfred Kahn, one of Jimmy Carter's economic advisers, was chided by the president for scaring people by warning of a looming depression. Mr. Kahn, in his next speech, simply replaced the offending word, saying "We're in danger of having the worst banana in 45 years." (Economist.com, 2008)
The real point of this article is not to just ask the question, but, as Mr. Kahn's joke implies, to subtly state the author's view that chances are, if we are not in a depression now, we may be in the near future.
The article points out that the same "experts" said that the U.S. housing market could never fall as precipitously as it has, are the ones who are saying, "recession, yes, but depression, no."
The whole tone of the article is rather tongue-in-cheek to say that those who think it can't happen, had better think of another name for it if they don't want it to become fact.
We do find out, under the hidden agenda of the article, that it is difficult to know the difference between a recession and a depression, because -- wait for it -- no one has ever really been able to define "depression." The popular rule of thumb for a recession is two consecutive quarters of falling GDP.
America's Great Depression, the author says, involved a decline in real GDP that exceeded 10%, or one that lasts more than three years. The problem with that definition is that we've only had one, while the country has experienced enough "recessions" to achieve a relatively firm idea of what one is. and, the article goes on to say that other experts believe that the difference between a recession and a depression is more than simply one of size or duration. Who knows?
America's economy may or may not have a distinct whiff of bananas. It just depends on who is doing the defining of what whiff a depression has.
Bibliography
Economist.com. (2008, December 30). Diagnosing depression. Retrieved February 27, 2009, from Economist.com: http://www.economist.com/finance/displaystory.cfm?story_id=12852043
Economic Depression of Europe An economic depression is more severe than a recession due to the fact that a depression involves drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and high levels of unemployment. There were economic depressions in Europe that were experienced before and after the 1870 but with a remarkable difference, being that those that were experienced before the 1870s were less costly
Third, economic depressions spread from one nation to others whereas economic recessions remain substantially isolated where they first occur and they are eased partially by the strength of national economies elsewhere. Finally, contemporary analyses of economic downturns suggest that distortions to industrial labor markets that keep wages above market-clearing levels are more significant than even bank failures (Ohanian, 2010). Recommendations and Conclusion It is recommended that public statements on the matter
(Buchanan, 72) The economic policy tools that were employed just after the war subsequently underwent some changes. From 1947 to 1950 direct controls on wages and distribution were eliminated followed by removal of trade controls in 1958. However, the government continued to maintain its hold over prices and credit distribution which made it different from many of its neighboring states in the postwar period. The French Ministry of Finance exerted
Many businesses could no longer operate in this fashion and likely closed their doors leading to a rise in unemployment. This is an example of the rule that Hitler had on the Pre-World War II German economy. The people of the nation were completely subject to his policies and because the economy was in such a vulnerable position as a result of the First World War, that Hitler's policies
Edgar Hoover, makes public its continuing investigation into the activities of black nationalist organizations, singling out the Black Panther Party in particular, Hoover viewing the group as a national security threat. January 05, 1970 Blacks Move Out of Inner Cities: The Bureau of Census statistics show as the quality of life in poverty-stricken urban communities worsens, a continuous stream of middle-class blacks escape to higher-income neighborhoods and suburbs. February 13, 1970 First Black
Fiorello Laguardia: Robert Moses Fiorello La Guardia took part in American politics. He was the New York Mayor, and then a Congress member from 1916 to 1918 and then from 1922-1930. Robert Moses, a Town Planner, worked predominantly for the Metropolitan area of New York. Moses is known to be the Master Planner of the mid-1900s city of New York. He and Fiorello worked autonomously in the city area of