Suggested by economic statistician Julius Shiskin in 1975, a recession is when the Gross Domestic Product (GDP) has two down quarters (i.e. shows negative

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Article Content:
What Happens During a Recession?

A couple different formal definitions exist for a recession. Here are a few popular ones:

A very strong argument exists that excessive government involvement actually makes recessions last longer. The Austrian School of Economics, for example, advocates a laissez faire approach to the economy. They believe that government involvement is counterproductive to recovering from a recession. The Chicago School of Economics also believes in libertarianism as far as economics are involved.

Harry S. Truman, 33rd president of the US (1884-1972) was quoted in the newspaper Observer on April 13, 1958, “It’s a recession when your neighbour loses his job; it’s a depression when you lose yours.”

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