economic depression

An economic depression is a significant and prolonged downturn in economic activity, marked by widespread business failures, high unemployment rates, and a substantial drop in consumer spending and investment. It usually lasts for several years and can lead to a reduction in the standard of living. During a depression, people may struggle to find jobs, businesses may close or reduce operations, and overall economic confidence declines. Unlike a recession, which is a shorter period of economic decline, a depression represents a more severe and lasting impact on an economy.