Economists warn that U.S. is facing slower economic growth ahead, raising fears that the nation may fall into another recession. But some financial experts say it makes perfect sense that business isn't bouncing back as it has after past recessions — because what we're experiencing is actually a full-blown depression, instead of a more common recession. Is this financial crisis a depression, or a recession? (Watch a CNBC discussion about whether this is a depression)
Sorry, folks. This is a depression: Unlike all the post-World War II recessions, this downturn was global in scale, says John B. Judis in The New Republic. And like the Great Depression, the current crisis was "precipitated, and deepened, by a financial crisis." Past experience shows that only massive government spending can speed the economy out of a depression — if we pull back, and treat this like a mere recession, we'll only prolong the pain.
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