Americans See Economic Depression as More Realistic

   

Posted: Dec 23, 2008

For a growing number of Americans, the idea of an economic depression isn't as far-fetched as it used to be.

A recent Gallup poll finds that 25 percent of Americans rule out the possibility of an economic depression in the next two years - compared to 40 percent back in March. A total of 35 percent now say a depression, defined as a prolonged recession lasting several years, is "very likely" and 39 percent say it is "somewhat likely."

Another 60 percent in the poll said that the current economic situation is the worst in their lifetimes, although only 48 percent of those age 65 believed this to be the case. Those over age 65 were also slightly more likely to expect another depression in the next couple of years, possibly because of their perspectives having lived through in the aftermath of the initial Great Depression.

The current economic climate has taken a heavy toll on consumer credit and on unemployment figures nationwide. Businesses have also been suffering from the impact of the credit freeze, which has forced them to put off hiring decisions and significant investments until the economy recovers..