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Depression Or Recession Determining Whether Essay

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 highlight the failure of the opposition to recognize or understand the fundamental nature of economic depressions and the dangers associated with ignoring the important similarities between the 2008 economic crisis and the Great Depression. The current economic crisis shares all of the conceptual hallmarks of an economic depression, including the potential to persist over...

In that regard, the key to overcoming the current economic crisis is in supporting federal spending to boost domestic demand, subsidizing new industries, and reforming the international financial system. Therefore, current right-wing opposition to federal spending has the definite capacity to perpetuate the severity and longevity of the problem and must be countered at every opportunity.
Sources Consulted

Judis, J.B. "You Say Recession, I Say Depression: Why the difference between those two words is so important to the future of our economy." The New Republic, September 7, 2010. Retrieved September 8, 2010 from: http://www.tnr.com/article/economy/77427/economic-crisis-recession-depression

Ohanian, L.E. "Understanding Economic Crises: The Great Depression and the 2008

Recession." The…

Sources used in this document:
Sources Consulted

Judis, J.B. "You Say Recession, I Say Depression: Why the difference between those two words is so important to the future of our economy." The New Republic, September 7, 2010. Retrieved September 8, 2010 from: http://www.tnr.com/article/economy/77427/economic-crisis-recession-depression

Ohanian, L.E. "Understanding Economic Crises: The Great Depression and the 2008

Recession." The Economic Record, Vol. 86, Sept. 2010: 2-6.
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