What is the difference between a recession and a depression?

Question

What is the difference between a recession and a depression?

Answer 1

A deep recession is a depression. But don't get too hung up on it...people cleaned up(made a lot of money) even during "the depression".

Nothing can stop you from making money but you. That's it. So I hope you're taking advantage of what's going on at the moment. Always use it to your benefit.

Good Luck.

http://www.BusinessViking.com

Answer 2

I think its like....recession is moving back, and depression is moving down.

Answer 3

A depression starts with a recession. A recession doesn't always turn into a depression though. A recession is never as bad and usually lasts less than a year. A depression lasts much longer, sometimes many years, and money is more scarce.

In a recession the economy is slowing. In order to stimulate growth the Federal Reserve will lower rates. The purpose is if money is cheaper, more businesses will borrow and expand.

In both cases the rates go down.

Answer 4

There is an old saying: A recession is when your neighbor looses his job. A depression is when you loose your job