Are we going into another Great Depression?

Question

Lately Ive been hearing a lot about how the economy is so bad. I mean so many people are loosing homes, gas is getting to $5 and the dollar is way down. So are we going into an economic depression like our grandparents were in?

Answer 1

It sooooooooooooooooooooooooooooooo appears you are sooooooooooooooooooooooooooooooooooooooo... right!

Answer 2

no because our government wont let it get that bad, they will just borrow more money. The great depression happened because of laisse-faire approach we had for our economy, and believed that price adjustments would fix the market. We are much more advanced than that. Times were much tougher in the 1970's than they are now, we are barely in a recession.

Answer 3

No, because most governments are better prepared. The  globalization and capitalism at its peak have contributed to the current downturn. We have become consumer and less and less countries able to produce the world demand. Thats why price of most things go haywired. The extent of economic depression will depend on policies of the countries.

Answer 4

yea we will be in another depression but not a Great Depression. A depression is characterized by a recession lasting longer than 6 months, and with gas prices and the miserable dollar that's likely to occur.

However the economic turmoil that we are going through was supposed to happen as dictated by the huge imbalance created by the trade deficit. However I do believe that it was not supposed to happen at such a rapid rate and in such a matter as now. In order for the US to recover from the trade deficit the value of the US dollar is supposed to fall in order for the US to gain obtain an equal balance of payments. However the price of oil has created a somewhat unexpected crisis as the pegged or fixed rate of the Chinese currency to the U.S. does not have as big effect as it once did.

The only way that the US will ever recover from this crisis, because it could spark the end of American superiority, is for the U.S. to become self-reliant country. This country imports entirely too much, and with our dollar weakening there is no way h**l we can afford to import goods and services anymore. Jobs have to stop being exported, but most of all the American economy has to become reliant on the American people.

Answer 5

Yes, you are. You're right, the signs are all there for a huge depression - just wait until the economy snaps under the strain of the high fuel prices (which are nowhere near as high as they are going to be) and jobs start going.

The "mighty" US has been brought very low indeed - the strange thing is, most of you still think you're on top of the world.

Old proverb goes "If one man says you're sick, see a doctor. If ten men say you're sick, lie down."

Lie down, America! You won't recover until you start recognising how sick you are.

Answer 6

No, while it is true that the price of petrol and housing is increasing but so to are wages to cover this increase.  Economic growth is still rising, meaning the production of goods and services are still strong, this means that there are still jobs and business is earning money.  The government uses many economic polciies to protect the economy from a depression - fiscal (changing the budget to increases or decreasing spending and taxation), monetary policy (interest rates) and external policy (exports/imports and foreign debt).  The economy will always move in cycles (boom and bust) but the depth and length of any reduction in growth and high inflation (increasing prices) is being reduced by good economic management.

Good Question!

Answer 7

Yes we are,

the people who are saying the government wont let it get that bad. the government doesnt care. As long as they are rich and the can afford everything they dont care about us low class people. You are so right. almost all the homes in my town are for sale two of my very good friends moved. and me and my parents cant afford gas.

we are heading for another Great Depression.

Answer 8

doubt it

Answer 9

If you lost your house, you are in a Great "Depression".

Answer 10

No -

Answer 11

He in australia, there has been talk of going onto recession eventually. This is because of high oil prices, debt, high mortgages, spending money people dont have. The selling and purchasing of goods and products to other countries etc.etc

and what is going on in the us market effects us too.

I dont think us with go into a depression, not in the near future but maybe a recession.

Its starting already. Australia is similar to us economy, as in we are suffering the same issues.

plus side for oz is our dollar is fantastic to the us dollar. whoo hoo for us.......but in turn, no one want s to travel to oz as its expensive now!

Answer 12

Yes. But there is one thing you left out. FALLING WAGES. Never before in world history have you had high inflation, huge debt loads, stagflation, and Falling Wages. When this happened in the 1970s and they coined the term stagflation wages went through the roof. Let me give you an example. I work on the Alaska Oil Pipeline. The Alaska Pipeline was built during the worst stagflation in the 1970s. In 1975 during construction of the Alaska Pipeline the job Im doing today paid on average $12 to $15 an hour. That was in 1975. Today the same job pays exactly the same wage, $12 to $15 an hour. After inflation the wage is alot less. But in addition to that, there is another situation tossed in here. I have no doubt that if I loose my job it will be filled by someone who will be paid 30% to 40% less. Thats happening all over the country. Wages are depressed in a hyperinflation enviroment. Yes I would submit that we are already in a depression but only a small few are feeling the effects of it. I think its going to get alot worse. I think it will be so bad that it wont be compaired to anything else in history. Just take a look a the stocks on the stock market. Most popular sticks that pay good dividends have lost 50% of their value. This is happening at a time when the first Baby Boomers are entering retirement.

Answer 13

I believe the world is . One much more painful then ever before . For most people live in cities and not on farms where they would be able to survive .

Answer 14

depression but not 'great'.

we'll just have to wait..... things may go the other way

don't give me thumbs down!:) I'm just saying what i think.... it's not offencive