Do you think the US will ever go into another depression? If so, when?

Question

If not, why?

Answer 1

A terrible thing to contemplate!

There are safeguards in place to prevent the cause of
the Great Depression. At that time, one could buy stocks on margin, ie, one could 'purchase" stocks with a minimum of 10% cash outlay. If the stock decreased in value, the buyer had to cover the difference with additional cash. As stocks plummeted, the result is obvious as most investors could not come up with the cash. A snowball effect took place.

That practice is no longer permitted.

There's an old saying, "If the US coughs, other countries will get pneumonia."
We have become a "consuming" nation. From the bottom up, to the government. It could happen.

I hope not. I lived through it, as a child, but I know the effect on parents. My father would wallpaper an entire room for $1.00.
Pork chops were 10 cents a pound. No one could afford them.
Pigs were slaughtered and discarded, crops were plowed under. No market. There was no deposit insurance in banking. When a "run" took place, and depositors tried withdraw their cash, the banks closed. The bank funds were out on loans, to individuals and business. No cash on hand. No one could repay. Most lost their savings. My folks included.

You, and all your generation, must get your education, get involved in government, reduce corruption to a minimum.
Maybe Y'all can prevent it.


It has become Y'alls burden to bear. What else can I say?

Answer 2

The economy is cyclic by nature. There are always ups and downs. We've had several depressions since the Great Depression of the 1930's, but not as bad. They also don't call them depressions anymore, because of the bad connotation from the Great Depression. At the moment, they are even afraid to use the word recession, even though we just had one post 9/11.

If I could predict when the next depression would be, I'd be rich, but it's impossible. It's probably not going to happen for a while, because we're coming out of a slump at the moment, but you never know. One perfectly timed hurricane, earthquake or terrorist strike could trigger the next economic slide.

Answer 3

Yes, we are undeniably heading into another depression. Society, like ecological systems, go through destructive and reconstructive phases of an adaptive cycle. There are many symptoms present in today's society that seem to indicate creative destruction in my lifetime (I'm 20 right now); these symptoms include advances in technology that lead us to feel in control of our environment, overprint of the dollar (which will soon devalue), small bubbles in the stock market, increased government control and influence, and so on.

However, it's hard to believe we will ever have a depression as destructive as the Great Depression. Chances are our depression will be more like this: two parents working to support a middle class family (which has already happened for the most part, but during a depression it will be necessary even for basic survival), inability for the middle class to purchase luxuries (most homes will be one car homes, etc.) and a higher than average unemployment rate.

Answer 4

The free economy is cyclical. In a down economy there are loss of jobs, bank failures, foreclosures and business bankruptcies, property value drops, etc. We have had many cycles. There is no reason to think this will never happen again...because this particular write-up does not make as good a campaign slogan as "cut red tape for the small business owner".

Other terms for a down economy are Panic and recession. The depression is significant only for it's duration and Dust Bowl component. During the Great Depression, most people managed to stay employed and get by. But an unusually large number of people were ruined financially.

This country has gone through many depressions, a big one about every 50 years, only they used to be called panics. Follow my link to the Wiki article and look to the bottom for a full list of panics. Lesser financial drops are called recessions. The recession during the 1980's was quite severe, and collapsed the housing market in parts of the country, such as Houston.

We will undoubtedly go through another financial trough. The preservation of government regulations over banks, lending institutions and the stock market are important in keeping these down economies from raging into a Depression.

Attempts to remove government regulations to "free business from red -tape and impossible paperwork" and efforts to privatize Social Security are increasing the likelihood that a next depression will be severe. People forget the reasons for the regulations, and blindly allow the laws that protect us to be changed in order to "streamline" during good times.

The lifetime savings of the elderly and their home value can be wiped out in an instant in a bad economy - when they have no ability to re-earn it. That is why Social Security is important as it is.

Answer 5

It is heading there now. As soon as the price of gas hits the minimum wage, a depression will start in this country that will make the 1930's depression seem like a birthday party. I fully expect the population of the US to drop by 30 percent when that happens.

Answer 6

The built-in mechanisms to protect the market will keep it artificially afloat for some time yet but with an undeniable energy crisis looming, when the fall does come, it will be bad.

My guess is sometime in the next 2 years... probably triggered by some regional conflict in the Persian Gulf...

From their, the whole index will become worth far less and that, combined with huge deficits, will tank our economy.

Answer 7

The U.S. is always in a depression. With the cost of living making it almost impossible to survive, a president leading us that gets us deeper and deeper into s.hit everyday, our levees and tunnels falling apart, our forests burning down by wildfires, hurricanes destroying our coastlines, and the whole world hating us, how can you possibly not be depressed?

Answer 8

Right after WWIII, if there is anything left of us.