Could we be facing another Great Depression?

0 Shares

The economy needs to turn around fastInternational economists are warning that unless the U.S. economy sees signs of a turnaround in the near future, the country could be headed for a deeper recession – or even a depression.

The IMF’s top economist, Olivier Blanchard, told French newspaper Le Monde that the next few months are likely to be "very bad."

"It is imperative to stifle this loss of confidence, to restart household consumption, if we want to prevent this recession developing into a Great Depression," he said, according to Agence France Presse.

His comments come after the U.S. government announced that the country’s economy contracted by 0.5 percent in the third quarter.

If the GDP contracts during the fourth quarter as well, it will embody the traditional definition of a recession – two consecutive quarters of negative growth. There is little doubt that this criteria will be met.

During the third quarter of 2008, personal consumption fell by 3.8 percent, while exports and imports stalled and the construction industry suffered losses.

Gross domestic purchases, which reflect purchases made by Americans for all goods and services regardless of where they were made, also decreased by 1.5 percent, according to the US Bureau of Economic Analysis.
ADNFCR-1961-ID-18945725-ADNFCR

Personal Liberty

Personal Liberty News Desk

Join the Discussion

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.