The Difference Between Recession and Depression
The terms recession and depression in economic are used interchangeably although they have a slight difference. Recession is the period of contraction in the business cycle. It is characterized by deterioration in grant output, income, trade and unemployment lasting for a period of six to one year in normal circumstances. On the other hand, economic depression is a prolonged period of recession. The time might be longer than one year. Nevertheless, both economic occurrences share the same characteristics.
This paper gives a brief summary giving reasons why the economy of the United states could have improved instead of going down. In his speech in 2009, Obama came into the lame light claiming that the economy of the United states was booming after recession. However, this statement appears to be contradicting because, the editor states that the US economy was undergoing depression. This happened after Obama tried to advance and implement Reagans strategy. After rolling out Reagans technique, he got the worst results ever experienced in the US economy. Thus, there was a lag in the Obama economic recovery policy.
Editorial's Relevance to the American Economy
Editorial's relevance is clear in the manner that his arguments were based on facts. For example, he gives a review of the American Economy. The report indicates that, the trend of the world's leading economy kept on repeating themselves. For instance, the is clear that once the prolonged recession resulted in a firm economic recovery. Consequently, during the Obama reign, it was observed that recession lasted for almost 72 months an equivalence of six year. Then after that the it shot up regaining all what had previously been lost. In conclusion, this paper supports the authors report because it was clear. Nonetheless, he disapproves the Obama sentiment by writing what was happening on the ground.
