Gaye Levy, Contributing Writer
There is an old joke among economists that states: A recession is when your neighbor loses his job. A depression is when you lose your job.
Jokes aside, we all have an intuitive idea of what makes up a recession: unemployment, plant and business closures and tough financial times for families.
But what about depression? To laymen like me, depression is a more extreme form of recession. It is characterized by extraordinary and unprecedented increases in unemployment, the reduced availability of credit, mass bankruptcies, the collapse of banking and financial systems and volatile financial markets.
Now to some there may be a fine line between the two. As a matter of fact, I recently read that when the economy crashed in 1937, FDR and his advisers didn’t want to use the “D” word, so they came up with the term “recession”. Until that time there were no “recessions (from Murray N. Rothbard’s book America’s Great Depression). Continue Reading