The word “recession” has been used day after day by millions of people for what seems like the past year. Even though the United States is facing major economic turmoil, many people use the word recession and are not sure what it means. All they know is that it could mean bad news for them. And while this is true, you should know what causes a recession, how to deal with your own personal situation, how you may be affected, and much more.

What is an example of a recession? Once you know this you will have a better idea of what the country and related economy is currently going through. Take the 1982 recession for example. This recession was caused by the Iranian Revolution. As you can see, not all recessions have to be caused by something that takes place on American soil. The new leaders in Iran began to toil with the oil export system, which in turn altered volume and demand. In turn, oil prices continued to increase and this put a major strain on the American economy. The end result was a recession that lasted for approximately 22 months.

Not all recessions are the same. The recession of 1982 was different than today’s, and both are unique when compared to the one that took place for eight months in 2001.

Now that you know the example of a recession, you are a more informed citizen of the Untied States. This should help you better understand what the United States, its citizens, and the economy is dealing with.

Do you know the difference between a depression and a recession? If not, you may be scared that the United States is in for a depression soon enough. Simply put, it is important to know the ins and outs of the depression vs recession debate. The fact of the matter is that there are many big differences, and you need to know what they are if you are interested in your money as well as the economy as a whole.

First off, let’s take a close look at the definition of a depression. This is a sustained downturn in one or several of the national economies. Simply put, a depression is more severe than a recession. It is important to know that there is no exact definition of a depression, and that the United States has not seen one since the 1930’s.

On the other side of the debate, a recession is a phase of the business cycle in which the gross domestic product is negative for at least two quarters. A recession is usually first visible in employment numbers, income, retail sales, and industrial production.

The depression vs recession topic is sure to be a hot one as long as the economy continues to struggle. To remember the difference keep in mind that a depression is a form of recession in which there are unusual negative changes to the country’s job markets, income, credit, and investments.

The more you know about depression and recessions the better off you will be. It is important to know the details of the depression vs recession debate; this will help you as a consumer.