Recession or Depression: What's the difference?

I was reading an old book I have had for about 25 years. It is an historical recounting of the conditions in society in the 20's and 30's focusing specifically on the stock market crash of 1929 and then the Great Depression of the 1930's. Yes stock prices for companies like IBM, GM and other top quality names had gone from hundreds of dollars per share, down to the single digits during the Crash and some had committed suicide by jumping out of windows in NY City. But what was surprising to me was that many didn't see any difference in their own surroundings in towns and cities across America, unless they were looking carefully for differences. For example, during the Great Depression there were less trucks on the roads and less cars. There were more people hitchhiking than usual, as many were transients looking for cities and towns where there was work. None noticed that trains had fewer cars attached. Nor did they notice the length of the Unemployment lines, unless they too were looking for work. When and if they were fortunate to go out to a restaurant, there was always an opening in those, where in better times, were filled to capacity and you couldn't even get a reservation.

There were more visible signs in more seedy areas, like the length of the soup kitchen lines and the homeless shelters, which extended around the block from their entrances. Other signs were the number of people applying for any job that had openings with skill sets much higher than were needed for the job. There were more panhandlers in major cities and the migration of those panhandlers to cities in warmer parts of the country. Hospitals were more crowded with people who were sick and had no place to go or live. Doctors helped patients without knowing whether they were going to be paid at all. Remember it lasted a number of years from the stock market Crash of 1929 through 1930, 1931, 1932 and 1933 into 1934.

The real difference between a Depression and a Recession can be boiled down to this. If you are working and secure with some savings and you see the news with high Unemployment, it is most likely that we are in a Recession, even a bad recession, but if it is you who are out of work with not much savings and more insecurity, you are in a Depression. So open your eyes during this holiday season and, if you can, help those less fortunate who need a helping hand, a warm smile and possibly your friendship. You see, their suffering is all around us and, in this season of hope and charity, we must open our hearts and our wallets. Merry Christmas. Donate to your local Food Bank or Homeless Shelter.