Recession Vs. Depression: What’s The Difference?
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- Опубликовано: 6 фев 2025
- Economists and journalists have been discussing the possibility of the U.S. entering a recession amidst the COVID-19 pandemic. Some have even gone as far as to say we could enter a depression. Here's a breakdown of the difference between a recession and a depression, and why we're likely in a recession, but not headed for a depression.
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Recession Vs. Depression: What’s The Difference?
Recession: short period of time
Depression：long period of time
There, saved you 6 mins
lol thank you! I genuinely appreciate it!
Life saver. No joke
Thanks man
Thanks buddy
Thank you
Recession! Crash! Inflation! It’s getting depressing. I have about $100k in emergency fund and I have been seeing good news about the stock market and would like to gain from that since I can’t let my savings be corroded by inflation. What stocks should I into as a newbie to safely grow my money.
It’s best if you buy growth/blue-chip/large caps stocks only. Also, as a newbie its advisable you work with an investment advisor to help set up a well-structured portfolio.
I was self managing but suffered heavy losses in 2022 and i knew i couldn't continue like that, so i consulted a fiduciary financial advisor. By restructuring and diversifying my $620k portfolio with dividend-paying stocks, ETFs, Mutual funds and REITs, I significantly boosted my portfolio, achieving an annualized gain of 30%.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Vivian Jean Wilhelm" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
My grandfather once told me, recession is when your neighbor loses thier job, depression is when both of you lose your jobs.
But don´t fear you have Trump lol
Its actually a joke from the Regan era...
@@ecki153 ?
Real depression is when you’re living in a house with 8 other family members and going to the food lines.
essel23fly That’s what it was like living in 2018 Santa Ana, California due to the high cost of living. What’s it going to be like now? 🤷🏻♂️🤨
Living on $0 in Los Angeles: Millennial Money "Depression Edition"
I'm sorry man, hope you find work.
Hope your alright. Maybe take this as a blessing in disguise and you can move to another state that’s cheaper.
Move to another state bro. Rent is like 800 bucks. You can make it 400 if you find a girl
@@essel23fly , Lmao
I just moved back to LA from Orlando cause of corona but wanna move back
Recession is when I have -500 overdraft.
Depression is when I try to pay the overdraft but realise I don't make enough.
Depression is when nobody will lend you
Recession is a small break before lunch.
Depression is when you're super sad.
I hope this helps us wake up as a country and come together to get some better health care available for everyone and to educate ourselves on personal finance. This is definitely going to change the way people live and think about money for many years to come.
Yeah people are going to have to hold off driving a 2020 Jeep Compass. Try driving a car that is 12 years old like mine.
It’s definitely a wake up call. The US needs to get its act together ASAP, like other 1st world countries‼️
Thanks to wuhan
Nicole Hilderbrandt - ThatGiles $40,560 is more than enough to on live these days.
Oh how naive we were
This should be a wake up call for everyone to get their houses in order financially, emotionally and be self-reliant. The government has never demonstrated the ability to come in and save you so you have to be ready and prepared.
I don't remember who said this:
Recession is when others lost their jobs.
Depression is when I lost mine.
Coronavirus was just the trigger, the economy was already over bought & debt was increasing with interest rates close to zero.
1st wave March 2020, 2nd wave August 2020, Recovery April 2021.
We’re in a economic depression, don’t be fooled by people claiming it’s a recession.
not yet
@@saltymonke3682 you're better off assuming it's a depression than expecting a recession and getting screwed. The Great Recession pales in comparison to the current and forthcoming economical effects of this virus.
50m unemployed, i'm calling Depression.
Recession is when your neighbor is out of work; a depression is when you are out of work.
Recession is when your neighbour loses his job, home, and savings. Depression is when you lose the same.
Don't you hate it when you're quietly waiting inline during Covid 19 and this happens 5:51 WTF
Optulent 🤣
Economist are a joke, 22 million e
Unemployed and their saying a recession is coming, lol
Bryan Abad it’s a joke when 25M Americans are jobless yet the market still go up.
@@apt62 no, the market has fallen. It's starting to rise again because this is when people who haven't lost their jobs or have large savings start buying to invest when the market returns to normal
@@GameFuMaster crypto is at the same level and going up
The problem is the economy underneath is sound, it stopped because of a pandemic it’s a bit different than past recessions
@@essel23fly agree, however people are still going to spend less for a few quarters, atleast. We were healthy but firms n people wont have money to spend.
“Can you use it in a sentence?”
I get depression when there is a recession.
I just want everyone to get out of this alive. Hopefully Americans will put more of an emphasis on health care and real financial education. Wishful thinking, but good luck y’all.
And hopefully we will find a boat to dump all these stupid people out in rallies on who vote against Health care just so they can keep women from having an abortion.
@@chrislanejones People like you got Trump elected.
Need flash: People die. Every day. From multiple reasons natural and otherwise.
@Nikolai Ninja 1. The popular vote (Ca and NY's vote) does not matter at all when the map was red :)
2. It has been proven time and time again that the democrats often cheat on elections with dead people voting etc which if accounted for would mean she lost even the popular vote
3. You should be happy clinton wasnt elected as she is one of the most evil people in parlament
school will never teach personnal finances.
Even finance grads/workers are highly financially irresponsible if not borderline gamblers.
Personnal finance is something you can learn from your family and through self education. Lot of parents are clueless and believe anything their financial planner who’s paid to peddle dome pre-packaged bundle will tell them.
Best strategy is to have a deep skilled from a field that you are passionate about and then invest in what you know which is often centered around your work experience or your passion.
The big issue with a lot of people is they make money one way and then put it all into something they are clueless about. For example even if lot of people invest successfully into tech, if you are a rich doctor or lawyer it may not be wise to invest in tech. Same with real estate, if you are a construction contractor or a commercial accountant with industry knowledge through decades of experience then maybe invest in that.
Lot of people lose fortunes on "sure bets" it’s always hopes of quick returns that lure people into making bad decisions. If you are unorganized and spend money losely find someone who’s organized and tight with their money and is able to measure and track whats inportant in what you sill invest in
0:55 2 quarters of negative gdp growth is a recession? You don’t say!
i'm sick with anxiety over all this
laffietaffie Don’t Be. Live Simple and Within your means. Stay out of Debt. You do not have to live austere and look poor to live well. We live in a society where people pay $100 for a product that was made in a Third World sweat shop for $10.
True that fricking so much of anxiety inducing crap everywhere I HATE CHINA and I dont belive anybody anymore
@@rajeev3983 Why do you hate China? What do you know about China aside from Covid?
I'm not waiting till "after the fact" to prepare for the recession. I started preparing after the last recession.
Well in 2020
Recession: you have no job and no money
Depression: you have no job, no money and no shortage of mental health disorders
Recession - two or more business quarters of poor economic growth.
Depression - negative economic growth for a year or more.
Fun or sad fact - the US had only one depression in 1929 (The Great Depression)
100 years ago many traveled to California on Route 66 to start a new, better life with new jobs after the Great Depression. Funny how now it may be best to do the opposite. 🤷🏻♂️
If the public cannot work, then all debt, mortgages, rent, needs to be halted as well.
Even more reason to be physically distant from others. The economy will only recover when people are recovered from COVID19.
Recession is a state of economy downturn
Depression is a continous state of my life
What’s the difference. 30 days
This has been the longest month
this video will be hilarious to come back to in 6 months
A recession is when your neighbors home gets foreclosed because “they were living above their means”. A depression is when you’re that neighbor.
*Medically induced coma. Sounds about right. As an investor, you'll see some good buys going on and build your dividends.* 😉
This is all planned no recovery for this year not until the vaccine is rolled out and 60-70% of the World's Population is immunised.
General Goods ETFs all the way.
If there is an actual depression you can expect a couple more years of market decline and a decade plus for the market to recover.
@@TheIntJuggler There is no IF about it. Now is the time to stock up on food and queue for hours.
@@sprig6043 don't forget the gun
Recession - take a break for eating 15 minutes
Depression- a time of grief I mean losing your relatives or helpless
The difference of today is the prevalence of online work, gig economy, side hustles, work from home, and self employment. But there is an adjustment period if the coronavirus lasts much longer.
Recession: what happened back in 2009
Depression: what’s about to happen this year
I believe it will all depend on the decision our leaders make to manage this pandemic. If we try to come back too quickly or too aggressively we could do more damage than good.
Horse schnit
Recession- pay cut
Depression- unemployment
Would be nice to interview these same folks again now, want to hear their thoughts now that we're in 2021.
How about 2022?
Recession is when your neighbor losses his job - a Depression is when YOU lose your job too.
but what if you're the neighbor and your neighbor is the one that still has a job?
this quote is broken, i don't like it.
Recession is when your neighbor is out of a job. Depression is when you are out of a job.
45 Million jobs is the level of the great depression. We are at 22 Million now.
Then count other countries. Like us, philippines, unemployed are now at 2.3m.
folks dont want essential jobs, there are jobs
Recession is V shaped Depression is U shaped
Now, is it a health crisis, or a fearmongering crisis?
It's interesting to look back on older videos...
In a recession : you’re eating breadcrumbs dipped in mayo for dinner.
In a depression : you wish you had breadcrumbs or mayo.
There is a good deal to be learned by studying how depression triggers aligned in the past. So, to understand why the "Great Depression" occurred in the 1930s, one must look at what occurred during the years building up to the crash.
A significant amount of the credit made available during the 1920s went into land speculation. A good primer on what occurred is found in the book "Only Yesterday" by historian Frederick Lewis Allen. Not only did investors become captured by the frenzy of the Florida land boom, this same frenzy occurred in many cities in response to population increases that triggered a significant increase in the demand for both commercial and residential land. An agricultural land boom also occurred during the First World War, during which time farmers borrowed heavily to expand their land holdings and production. A few years was required after the war ended for European farmers to recover, but by the mid-1920s global production exceeded demand, prices fell, farmers defaulted on loans when government guarantees were removed, and rural banks failed by the hundreds.
As the land boom crashed, investors shifted heavily into the stock market, driving up prices well beyond what any fundamentals supported. Thus, by the end of 1929 the U.S. economy was stressed across almost all areas of production as well in the financial markets. To be sure, imprudent bank lending deepened the crash and lengthened its duration, but it was a crash in the making because of the failure to utilize tax policy to tame the credit-fueled, speculation-driven land markets. A few economists (e.g., Harry Gunnison Brown, Scott Nearing and John R. Commons) had argued the case made in the late 19th century by Henry George, who showed that cyclical booms and busts would be tamed only if the full or nearly-full public capture of the potential annual rental value of land and of rents from other sources (e.g., the broadcast spectrum) became public policy.
Harry Gunnison Brown was joined over the succeeding decades by a small group of economics professors who continued to make Henry George's case. One could argue that recessions that began again following the end of the Second World War would have been even worse if local governments did not capture some land rent via the taxation of real estate. However, as land prices climbed property assessments rarely kept pace. This made speculation in land an even more profitable investment.
Relying on out-of-date assessed valuations rather than current market values created a serious analytical problem for government statisticians. They simply did not understand that any increase in the price of land is inflationary and did not include such increases in their calculation of inflation. Another failure has been to accurately calculate the annual aggregate rent that is privately captured as unearned income (whether imputed or actual). Since the administration of Ronald Reagan, the federal government has not monitored land prices. The figures utilized in the econometric models relied upon by the Congressional Budget Office and the Federal Reserve are around 5 percent of the actual potential rent in the economy (see Joseph Stiglitz or Mason Gaffney on this particular problem).
I offer here a very rough estimate of the rent attached to just one part of the economy, the residential property market. At mid-2020, the median price of a single-family property was around $295,000. There are about 140 million existing housing units in the United States. If we assume a fairly conservative median land-to-total value ratio of 35%, this means that the aggregate residential land value in the U.S. is $103,250 per property, multiplied by 140 million = $14,455,000,000,000 ($14.455 trillion). Economic theory tells us that this aggregate land price occurs because of the capitalization of the net amount of rent that remains in private hands after taxation. If most or all of the rent were captured via taxation there would be nothing to be capitalized and land prices would fall to very close to zero. What the rent fund might be depends on the discount rate. If we assume that investors will invest in land if they can obtain an annual increase of 5%, the the rent fund would be calculated as follows: 5% of $14.455 trillion = $722.75 billion of rent JUST for the land under existing residential buildings. Add in the number of vacant residential lots around the U.S. and this figure will increase considerably.
Tragically, the public capture of land rent never became public policy, allowing the land market cycle to operate from boom to bust. It is on schedule to crash again in 2026. I have prepared a relatively short video in support of this forecast for anyone who reads this and has an interest in more details:
ruclips.net/video/fmA6ZPs-wus/видео.html
Depression is defined as long term recession, years or decades. The evil of depression is long term unemployment. In 2020, depression was avoided by pandemic relief cash from the government, investment in healthcare business, surge of stock values and crypto-currency.
They should do sit-ups where the upper part of the abdomen is worked, with the legs raised and trying to touch the feet with the hands and its variants that work the upper part of the abdomen, they will see improvements quickly. That upper abdominal exercise will take away your depression and anxiety, it will also heal your mind....
Feels like a Depression. Some can't find work and most can barely buy basic things. 😑
This is a game changer for the whole world.Unemployment will stay high due to business failures , especially the service sector.
1:18 I've never seen someone so joyful to explain the collapse of the economy 🤣
As far as I’m concerned; the United States is in the beginning of a serious economic depression; in about a month there over sixteen million people have become unemployed, and the unemployment claims are overwhelming to the government employees who take care of the unemployment claims!
There has been long lines of vehicles at shopping malls with the motorists ready to pickup their free food.
YoniNadi it’s not just the United States
One is like recess the other is depressing.
CNBC is giving a great explanation. Thanks.
Print more money and pass it on. It has worked before. Lol.
I can’t believe that Stanford DEAN said that a depression is a really long depression, LOL! Just another reason to not give any mental credibility to that institution.
I see she either doesn’t understand the different symptoms and conditions...or more likely she just talks down to the public because those places think so highly of themselves. What a joke.
Here’s what she meant, an economic downturn is usually managed by oscillating interest rates from high to low to stimulate borrowing, being in a low interest rate environment, that response is unusable. So individual austerity leads to a accelerating deflation in economic growth, we see stimulus, money creation, usually infrastructure and job creation, as well as higher taxes to offset the outflow of gov’t money. Social tensions rise, between the have and have-nots. We want inflation to be a greater sum than the interest rate on our national debt, but very close to it for a happy “Goldilocks” inflationary rate.
BTW we are in a depression, it’ll be on the news in a few years officially.
Recession or depression you loose the Perks on Life
So the difference is whether it lasts more than 6 months?
Recession is when the economy slows.. depression is when my weed delivery guy says he’s sold out for at least the next few days.
Everything is correcting itself. There were so many jobs to begin with because businesses have over-extended themselves and now they are unable to pay back their debts.
A Recession is when you neighbor is unemployed, depression is when you are unemployed
You can't enter a recession in a week... 2:00 how is he a economic professor? He can say we were almost definitely going to enter a recession but the earliest you can say we entered a recession is November the official time when we enter a recession...
why is this even a topic? he silly
My personal definition of Recession and Depression. Recession is 2 quarters of negative growth. Depression is 2 yrs of negative growth.
I’m not an expert , but many countries are back to a kind of normal , Taiwan, Hong Kong and New Zeland ... so I think people should be positive! Maybe just more few weeks to go over this pandemic!
Recession is you being sad.
Depression is you being depressed
The difference is already well known. recession = someone else gets laid off. depression = you get laid off.
You could be that someone else. Why??
It's pretty sad to hear how many people get infected and die of covid, but is even sadder to hear how many people get laid off and go hungry, seeing the huge lines of people waiting for some food is just horrible and heartbreaking, I really feel blessed To keep my job amid this terrible crisis and I've become more appreciative for what I have, and that is the biggest lesson this pandemic has left me, to never take anything for granted and be really appreciative
I've never lived in America but it seems that most people are obsessed about working a lot to make money a d spend on stuff. Most of americans live fron one upaycheck to the next with a lot of monthly expensies that could be easily eliminated. This makes savibg money for times like this very difficult and after only one month without a salary people already dont have money to pay their debts or food. Also, opposite to europe, there is nothing like social security support. I think this country needs a complete reset.
thats a personal decision. usa has plenty to do any day, any time so $$ can be spent and a growing population.
who else got lost @2:43
Back to gold standard first American 🔥🔥🔥🔥
We had a recession in Q1 and Q2 of 2020. Our gdp growth has been positive since then so we are out of a recession. Right now unemployment is at 6.2 percent so we are not heading to a depression. The year will start off slow since demand is exceeding supply but Q3 and Q4 this year will be strong. Never bet against America 💪🏽
Nah the us is slowly but surely heading towards a depression, since they printed loads of money during the pandemic
@@Echo5427_ We’re definitely experiencing inflation due to all the money that was injected into the market. Short term we’ll be fine since demand is increasing with everything opening up. The only worry I have is the Fed increasing the rate interest due to inflation.
@@pedrohernan896 yeah and inflation is a way to depression, since the consumer looses his purchasing power over time.
During the "Boom" years, in America, it were the worst times for the consumer, why?
Because the US had a few years prior the boom years a recession (I think it was 1921 for 18 months )
the government was scared that something like this would happen again, so during the "boom" years they printed loads of money to stimulate the goods Industries so they produce more(and artificially made it look that everything was alright) , but over time, there werent any consumers anymore since the prises were too inflated and that's how the depression then happened from 1929-1945
@@Echo5427_ Okay since inflation has already arrived when do you think consumer confidence goes down and we hit a depression?
@@pedrohernan896 at the moment were the money was printed, a time bomb was activated, they can still stop the printing of money which would result in a recession, but I cannot give you a date when the depression happens, that is impossible , but it's not just for the USA, since many countries print money to stimulate the market artificially.
In recession u are poor in depression u are homeless
u.s. prints too much money for a depression, this is a supression
“ Depression is a long recession”. I hope it is not a depression
A recession is when your neighbor is out of work...
Depression is when you're out of work! :-(
Who is now watching in 2022?
Thank you.
Did anyone else notice that in 3:02 they show the GTA V jewelry store?
If restaurants, travel, retail, movie, sports, real estate, and automotive industries start filing for bankruptcy we will enter a depression due to pervasive unemployment.
I think we will have a short Depression like 2-3 years, but not as long as the Great Depression. Goverment is able to help people more than in the 30s.
It'll be interesting to see what happens in the next couple of years. We do foreclose property management on our channel, and expecting a huge increase in foreclosed homes.
I am 28 and unemployed since last 28 years..
Recession is a stretch of depression 😢 😪
i hope you dont think the 2020 is over and we turned a corner we delayed it 2 years we have been in a recession for past 7 months but it wont be obvious for another 5 months the base case is a 2008 heavy recession or worse house prices for 10s of millions have seen there values drop 15-22% in price already
These people are disconnected. We will have a depression. We don't have a good policy. Good policy to get us through a pandemic would be UBI, paid sick leave, and universal healthcare.
TRUMP just hinted on Fox News, it may be worse than a recession.
Recession is when your neighbor loses his job.
Depression is when you lose your job.
Recovery is when Biden loses his job.
😆 lol
Recession is when you met up with your ex.....Depression is when your wife catches you out 😂
Has it been two consecutive quarters? Of negative GDP growth? 1:25 then it isn't if it only will be one quarter 1:50
It's not a depression yet but it's really close.
The real depression will be next year, 2024. It's going to hit hard because we have gone soo long without a real down turn in the economy. Good luck
I think IF this administration keeps dragging its feet like it has during this ENTIRE crisis so far then it will be a depression...WE NEED A PUBLIC WORKS PROGRAM WITH GREAT WAGES!!! $30/HR WITH OUTSTANDING HEALTHCARE BENEFITS AND A GREAT RETIREMENT!!! THATS A GREAT START!!!
One is small, one is YUGE!
Yolk
How can anyone that knows even the basics come to any conclusion about this mess?
"They" makes the rules, decided who wins and who loses and morph laws on the fly to ensure their plans succeed. You cannot plan for the future in these conditions. If you do find that loophole, that way to keep what is yours, they will eventually find it.
I believe current stimulus policies right now are going to lead to an economic depression because lawmakers are implementing a top-down approach to saving the economy like it was done during the Great Recession (back in 2009). By bailing out the large business and corporations first, and not dealing with the major problem which is unemployment and loss of health care insurance (since the majority of people have health ins. through their employer), this will lead to a crash of the stock market and a long downturn of the economy.
During a pandemic and the resulting lockdown of the country, you should be doing a bottom-up method to saving the economy because GDP is mainly due to consumer spending, and if tens of millions of people are out of both a job and health insurance, then GDP will plummet and stay down for the foreseeable future. This will not be a V-shaped recovery because of a number of factors:
1) Consumer worry due to coronavirus; may not be ready to start spending like before until a vaccine is available, along with proven therapeutic treatments. Sectors hurt the most will be entertainment, travel, & dining.
2) Standard testing (including anti-body check) has not been implemented nationwide yet and is not yet 100% reliable (a story about U.S. Navy ship Roosevelt stated previously-infected sailors tested positive again for the virus after quarantine; the previous testing may have provided false-negative results).
3) With only a bare minimum of small businesses getting money from the federal government's Paycheck Protection Program and all the restrictions that come with the loan, hundreds of thousands (if not millions) of business will be closing permanently, which means those job opportunities will not be coming back.
4) Because we are not providing more economic relief for unemployed workers and small business owners, and the inability of state unemployment insurance to adequately pay people in a timely manner, a lot of people have to choose between essentials and paying rent/mortgage. This will eventually lead to future evictions and possible bankruptcy, due to having to accumulated huge amounts of debt. A housing market crash is a matter of when not if.
Once we return to some type of normalcy, consumer spending will be dramatically different and lower than before the pandemic, and there will probably be a steady 15% unemployment for the next year or so. I believe this depression will last for at least a decade, if not a generation.
0:40 Utterly unnecessary question.
Hello
Hugh J it’s me.
Hugh J hi
Hello from the other side!
Recession + petrodollar crush = Depression
America is in a deep deep deep depression until 2022. Government acting like a kid. 2points a whole summary.
N. T. soyboy spotted
Depression = game over for the most people.
Now would we be in a depression if some people die of COVID and the unemployment rate goes up?
Interesting!
We'll know if we've entered a new recession on July 28th