Forget recession. Is America in the midst of a full-blown, no-joking, outright depression?
"If the notion that we are merely living through the aftereffects of a mere 'recession' that ended in 2009 sounds somewhat ridiculous, that's because it is," says Richard A. Posner, a federal judge and law school lecturer based in Chicago. "If we were being honest with ourselves, we would call this a depression. That would certainly better convey both the severity of our problems, and the fact that those problems have no evident solutions."
Posner is an authority on both the law and economics, a man widely cited for his insight and analysis.
So is Posner right?
We usually think of a "recession" as a period when there have been straight quarters of economic decline. A "depression" is something worse. It's a 10-percent drop in the gross national product, or a decline that lasts at least three years, according to The Economist.
But forget academic definitions. When a large percentage of the population is hurting, it's a depression.
- If you've lost your job, it's a depression.
What do you think? What's your definition of a depression?
This piece was published originally at OurBroker.com, a leading real estate and personal finance site.
How will Donald Trump’s first 100 days impact YOU? Subscribe, choose the community that you most identify with or want to learn more about and we’ll send you the news that matters most once a week throughout Trump’s first 100 days in office. Learn more