Will a depression ever be declared by the administration ?

[steve2470]

Many of us at DU feel the economy is already in a depression. "Another proposed definition of depression includes two general rules: 1) a decline in real GDP exceeding 10%, or 2) a recession lasting 2 or more years" (http://en.wikipedia.org/wiki/Depression_(economics).

It seems the current recession/depression has been going on for at least 2 years. Has real GDP declined by at least 10% ?

[Warpy]

1. Only when it is nearly over

The admen running the official message machine would never allow it.

Naming it will likely start at the bottom and it will grow until they're finally forced to acknowledge it or look even sillier than they already do.

[Bleacher Creature]

2. The administration doesn't declare recessions or depressions.

It's a non-profit group of economists that does it.

[steve2470]

5. National Bureau of Economic Research, my bad, you are correct nt

[Kurt_and_Hunter]

3. There is no recession... as such.

There is not a word for what we are in... it's like a depression without a recession.

The economy is growing... a little. So no recession.

Inflation is possitve... barely. So not deflation.

Unemployment is stable... at about 10%.

And with no ends in sight, for years.

In Japan this was called the lost decade but that's not any kind of formal economic term.

[tridim]

6. Add in corporations hoarding profits and I think we need to coin a new word.

[nadinbrzezinski]

12. And in the 1870s a similar situation was called the long years

Realize some of the data is not exactly accurate for the 1870s

[eridani]

18. Some have suggested "the new normal"

God help us all.

[xultar]

4. sorry wrong story.

[DJ13]

Maybe a third description needs to be considered

Any lengthy period where a majority of the people are feeling depressed about their economic well being during or immediately following a severe recession.

[jtrockville]

7. GDP fell 2.6% from 2008 to 2009, but ...

Was positive in years before 2009, and looks like it will be positive in 2010. Keep in mind, the wealthy are doing very well in these times.

[MannyGoldstein]

8. Alan Grayson will honestly name it a depression

When he announces his bid for President.

[Monique1]

10. What depression ae you talking about?

[MannyGoldstein]

13. Oh, nothing

Move along, nothing to see here.

[nadinbrzezinski]

9. Real GDP has not declined that much

in fact has been in positive growth territory for a while.

That MIGHT change if we go into a double dip, but that is why TECHNICALLY this is not a depression

It may feel like one, but...

[pnwmom]

11. No, because that action itself would cause actions that would lead to a deeper

and longer recession/depression, whatever it is that we're in now.

[Monique1]

14. Seriously

there is no depression, we are at a stand still. Everyone is sitting on the footstool waiting for things to change that we did not do several months ago. We are living in doubt right , a little than a depression. But, if I keep reading the negatives of the media and those here - yes, I am in a depression.
I'm beginning to believe our country is happy being DEPRESSED!

[Prisoner_Number_Six]

15. Right after they declare peace.

IOW: No.

[Demeter]

16. Duzy!

Whatever happened to that, anyway?

[TheKentuckian]

17. Thou shalt not speak ill of the economy, so neverish

[The Northerner]

19. Possibly, but maybe in a subtle manner

[dmallind]

20. It's not current, and no

And that definition is "proposed" for a reason.

Recessions end when GDP growth starts - which includes the last 3 quarters.

While it lasted GDP contraction was nowhere near 10%.