 TITLE: What Is the Difference Between a Recession and a Depression? CONTENT: What Is a Depression?\n---------------------\nAn economic depression is similar to a recession, but much more severe and longer lasting. Not only does a depression last longer, but its effects can be far-reaching and linger long after the economy begins to recover.\nThe NBER has no formal definition of a depression, but points out the last event widely regarded as a depression was the Great Depression of the 1920s and '30s. During this depression, the national unemployment rate climbed to nearly 25%, with the GDP declining 27%. A depression can also greatly reduce international trade and wreak havoc globally.\nThe Great Depression was the longest and most severe financial crisis of its kind in the U.S. It started with a recession where the country saw spending decline and subsequent manufacturing decline, but before long had evolved into a depression that rippled out across the world. Even people who kept their jobs saw incomes go down by as much as a third. END