When will the US economic crisis end?

Answer 1

We are lucky to be able to look at the past and see what has happened before to our economy and country. The great depression itself started in 1929 but by some estimates ended in 1933...There was a second recession in 1938 so some say that the Great Depression lasted from 1929 to the early 1940's however most scholars really put the end of most of the fundamental problems halted in 1933. So in a sense the greatest depression in the history of mankind only lasted 4 years. We are facing a crisis that many are quick to label the greatest danger since the Great Depression but is FAR from it.

When the Great Depression occurred economists had no real basis to compare that economic crisis. And because of that they advised many policies that inflamed the situation more. They also made great suggestions and policies that helped the country out of that Depression. Our current Economic Crisis is not much different from the Great Depression or all the other recessions this country has faced (roughly one every decade). We are in FAR better shape and we also have the benefit of proven policies that WORK and we know what does NOT work. I dont have any doubt in my mind that this recession will not reach the scale of the great depression, neither in terms of economic loss nor in terms of length. No one can tell but I'd say the worst hasn't come and next year will be our worse year yet. However within two to three years we will be back on the rise and within 5-7 we will be back at pre-crisis times. Unemployment will never hit 30% again like it did...although I think at maximum it could hit 15%.

There are always industries that thrive in economic crisis's and just because the majority of people are doing bad doesn't mean you have to.

Answer 2

While there is no way to tell exactly when the crisis will end, there are some opinions and indicators to watch out for. Most believe that the Us has avoided a very serious economic collapse, but that the recession that the US is in may get deeper or be prolonged. Some things to look out for are Fed rate moves, unemployment, inventories, and the GDP. If the Fed raises interest rates, it means they are not concerned about economic growth being too little or that they fear inflation. Higher unemployment could point to failing or unhopeful businesses. If a business cuts labor, it means that they do not look positively to the future. Also, the less people that work, the less money that is being spent by consumers. Business inventories are another thing to watch out for, but they can be kind of tricky. For instance, if a business has falling inventories it could mean that they are doing good and selling off their inventories or it could mean that they aren't asking for more supply from their suppliers, which would mean that they do not think they can sell that inventory. Not buying from suppliers could result in layoffs at that supplier. The GDP is an obvious indicator. If the US gets back into positive GDP, it could mean that the recession is over.

Answer 3

given the history of these things, we might see a return to economic growth sometime in the next decade, but any more precision would require seeing through time.

Answer 4

nobody knows.