When does a recession become a depression?
It doesn’t. The word “depression” was first used during the long era of falling PRICES in 1873-96, which of course was an era of good growth of what we nowadays call “real GNP” (or GDP). Then there was the severe downturn known as “The Great Depression” of 1929-32. There has, mercifully, been nothing comparable since, and the setbacks we have had have all been called “recessions” – corrections necessary because excess greed and risk-taking gets the better of people.
