Nearly Half Of America Says U.S. Nearing Great Depression: CNN Poll

Some economists might be worried about a double-dip recession, but a large number of Americans have an even worse scenario in mind.

Approximately 48 percent of Americans say they think that a Great Depression is either very or somewhat likely to occur within the year, according to a CNN Opinion Research Poll, the highest percentage of respondents that have stated that level of certainty since CNN first started asking the question in October 2008.

Respondents' fear that they would soon become unemployed also spiked to an all-time high of 30 percent. That stands in contrast another post-recession low: the 18 percent that said they either recently became unemployed or are related to someone who recently became unemployed. The seeming contradiction might be explained by the average length of unemployment now hitting an all-time high, as The New York Times recently reported.

That Americans seem apprehensive about their economic futures should not be surprising considering the recently lackluster job creation. Last month, the private sector created only 54,000 net jobs while public sector employment actually saw a net decrease in jobs, according to the Bureau of Labor Statistics.

Housing prices have also continued to fall, reaching new lows during 2011's first quarter according to Standard & Poor's/Case-Shiller Index.

Confidence in the future is essential for economic growth, says economist Thomas Boston. "If you are concerned about job security, you are not likely to make the purchase, no matter how low interest rates might be," Boston wrote in the online publication Black Enterprise. "The same logic holds for business owners deciding whether to undertake a new investment."

The high percentage of Americans that say they believe that there will be an economic depression should raise alarm bells in and of itself, says CNN polling director Keating Holling. "That's not just economic pessimism," Holling told CNN, reflecting on the polling results, "that's economic fatalism."

Comments

[labrown]

07:17 PM on 06/30/2011

Duh! The only numbers that point to anything good are the numbers they use that don't tell you the rich are getting richer. That is what they call "growth" This is the direct result of excessive deregulation, Gramm wrote it and Clinton signed it. Don't you be a sucker and believe anything else.

[labrown]

07:16 PM on 06/30/2011

Duh! The only numbers that point to anything good are the numbers they use that don't tell you the rich are getting richer. That is what they call "growth"

[vaudevillian]

08:44 PM on 06/15/2011

If America does not fix their problems very shortly it will damage its AAA rating. If this happens it will cost more to borrow and most likely credit default swaps. This will cause some serious inflation with the quantitative easing that has been going on in the states. This will in turn increase the prices of the every day goods you buy.

These two things alone will make it next to impossible to make ends meat and make it damn near impossible to reduce the American deficit. This might actually cause the IMF to try to bail out the states, which in turn creates the same problem. A bailout is just a stay of execution.

Bad hints to bad economy:
US manufacturers inventories are on the rise and getting to a point to reduce workers.
First quarter GDP was only 1.8%. It fell from 3.1% of 4th quarter of 2010. There are places q2 GDP at 3.0% for second quarter but I personally think it will be 1.3% with the last quarter job numbers. Inflation rates in q1 were horrible as it is at 3.8% with only a 1.8% growth in GDP. This is why reduction in work force looks to be very possible. Most corporations balance sheets operate the same way. Sales down, inventories up, reduce work force.

I could say a lot more but I will stop. It is a long winded post.

[vaudevillian]

08:43 PM on 06/15/2011

Canadian here.

You have to think a little more globally when arguing your points about the American economy, its global now.

Every section of the US Gov. has been bought and paid for by Corporations. Corporations are in the job of creating wealth for the Corporation and its share holders at the expense of anything. If a Corporation can move its factory to China and pay some poverty stricken Chinese Citizen $150 a month and then ship the product back to the USA and make a killing they would. Corporate greed has ruined your nation. Its slowly happening in Canada as well. This is one giant issue you guys have to fix. Small and medium size businesses are disappearing all over the states. Check you debt clock under small business. These Corporations are literally leeching every last cent out of the States as possible. http://www.usdebtclock.org/

Now to the hard part of fixing your economy.

I know you guys think this is a bad word, VAT tax. To just balance the budget you would either have to cut 25% out of the budge and charge a 25% tax on all goods, or a 50% tax on all goods. There is also; increase the income tax rate and close some loop holes for the really, really rich Americans, just to decrease the deficit while using those tax rates.

Promote small business and patron them as well. They will higher more people then any Corporation.

[fortressfountain]

11:43 AM on 06/14/2011

The media will not say the r word-much less the d word.

[fortressfountain]

11:33 AM on 06/14/2011

I do not see anything wrong with this man asking for money-a lot of the right has a big problem with the beggars they helped create with their "free market policies="corporate welfare for the banks and cronies."
I am getting tired of everytime I go into a store they are asking me for a buck for charity. Why should I give them a dollar to create a charity and use it as their tax write off?
About the article-the media cannot bring themselves to say the r word so do not expect them to say the d word.
Too many bank and wall street sponsors.

[porsche996]

01:09 AM on 06/14/2011

The judgment should be based upon what citizens are experiencing NOT what CNN asks with biased questions to slant the story optimistically.

Fear is generated by the certain knowledge that we are being manipulated and lied to by the government and the media shills.

[porsche996]

01:06 AM on 06/14/2011

Isn't this the 57th housing report that's supposed to be the bottom of the market and see a turn around from here?

[porsche996]

01:03 AM on 06/14/2011

We clearly need some volunteers for America.

[porsche996]

01:01 AM on 06/14/2011

Remembering that 48.5% of any statistics cited by the government or reported by the Corporate/government controlled media outlets are 100% made up to suit their agitprop agenda.....plus or minus 3%.

[porsche996]

12:58 AM on 06/14/2011

Good example of how to slant your results...they didn't ask........."Is the US experiencing a Depression now?

Have we been in a depression since 2009?

[kenyng1]

04:00 PM on 06/13/2011

CNN Pole??? Who the he** are they polling??

Let's start a depression, good going CNN!!

Keep the propaganda going, maybe you'll be able to get enough people to believe your bogus polls!!

Wait it's working!! I feel depressed already!!

[sunflower12]

06:05 PM on 06/11/2011

Big corporations, please bring American industries back home. Let us buy Made in the USA products.
It's the greed from big corporations that has greatly contributed to what we face nowadays.

[ABACADABRA RABBIT]

12:16 AM on 06/12/2011

Good call.

[HiramWdwsn]

09:35 PM on 06/12/2011

You're too naive.

[Vic22]

01:56 PM on 06/11/2011

Yet somehow the right has hi-jacked the dialogue, and made Americans think that spending cuts are a good idea right now, when we're still trying to get back on our feet

[mooncop1]

01:01 PM on 06/11/2011

This news comes from CNN. How shocking I thought Fox news were the only ones reporting the truth. Now it appears Obama can't run from the facts. Oh, once again I forgot they only listen to that aljazerra station in the white house.

[Harbinger08]

03:58 PM on 06/11/2011

So, even though conservative economic policies have had over 40 years of leeway to be proven as catastrophic, you want to just blame it on Obama and double down on stupid by doing even more of the same? Brilliant, and such an original idea, too. Tell me, did you think of that all by yourself?

[spinotter11]

08:07 PM on 06/11/2011

Fanned, but your words of wisdom are probably wasted on those who see only what they want to see.

[MayorsRevenge]

12:16 AM on 06/12/2011

You guys will just never get it will you. Libs/Conservative = irrelevant. They both pursue the exact same monetary policy - forced inflation in the credit supply via the Fed.

[dayzee10]

10:40 AM on 06/12/2011

Tax cuts for the top 2% and the corporate greed machine will help again!!!! May you trickle down upon us masters......and a beforehand thank you for your wetness!!!!