Find solution
Would another "Great Depression" happen?

Do you think another depression will happen within the next 10 years?

  • If yes, please explain how and when you think it will happen and strategies to work around. If no, please explain why.

  • Answer:

    I think there will be a depression in USA within the next 10 years. But it probably won't be anything like the last one. Every depression is different and unique. Because the economic conditions are different. And the government's reaction to it is different too. Some time in the future, the US dollar probably will loose a lot of its value relative to other currencies. Because USA keeps having huge trade deficits. And the US government now needs to borrow trillions of dollars in order to pay for all of its bailouts and to compensate for its decreasing income from taxes. One of these days, US debts will become so large that the lenders will get scared and stop lending more. The US dollar will probably go down a lot, making foreign imports expensive in USA. And the US government will have little choice but to scrap all of its bailouts and drastically decrease its spending at home and abroad. Which would cause a substantial decrease in the standard of living in USA. The US government could try to print money the way Zimbabwe recently did. But such hyper-inflation would probably destroy the economy more than would cutting back on spending and decreasing the standard of living in an orderly way.

okimread... at Yahoo! Answers Visit the source

Was this solution helpful to you?

Other answers

No. If we start to make some serious changes now, we will be okay.

I wasn't asleep! I was drunk

this country will not let another depression happen again... you see they are already helpin with bailouts.. so i think not...

ERic Clark

Well, there is more and more people entering the unemployed scene - meaning less buyers - which will then mean lost business (restaurants, clothing stores). Not to mention the high amount of people in the middle class - not everyone can afford Coach, Express, fancy French bistros to dine in. The gas prices are another thing all together. More and more people are also walking, public busing, biking, and carpooling to save money from evil gas stations. The housing bubble is going to pop soon too. People can't afford to pay their mortgages anymore. Therby selling their house. With several hundred people selling homes, its difficult to find a buyer. So, the houses' price is lowered. With the prices lowered, the seller can't afford to fulfill the bank statements saying the bank requires payment (because everyone takes a loan from the bank to buy a house). These sellers then go bankrupt, which declines the economy more, because they don't have a surplus of money to spend like eating out or games. Its a full circle effect, the way one thing can affect the entire economy. Throw in our ill chosen president-elect Obama into the stream, and a depression is inevitable.

Chelsea G

The way things are going it seems so. The economy is bad right now. Thrift shops and other stores like it are getting more business. There are websites on the internet for trading and what not. So i think we'll be fine.

*.: eyelight :.*

10 years? Look around you! You're soaking in it!

claudiagiraffe

Related Q & A:

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.