250 Words or Less

On Monday 12.08.08, Kitty Pope asked me to answer a simple question. “What’s the difference between a recession and a depression?” But, before I could provide the simple answer, she kept going. I now have a new assignment – to provide information and ideas to help our members in these difficult economic times – both at the library level and also on a personal level. To keep it manageable, I’ve decided that I will attempt to accomplish these postings in 250 words or less.

So, once? Twice? Three times a week (or whenever I can find time) I’ll post something that will hopefully be of use! Now, back to Kitty’s question.

Recession vs. Depression

According to Investopedia.com, a recession is defined as “A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP).”

From the same source, a depression is defined as “A severe and prolonged recession characterized by inefficient economic productivity, high unemployment and falling price levels.”

The recession is a returned book with a few creased pages; the depression is the same book with the cover torn off with half the pages stuck together with jelly.

So, is the US in a recession? In March 2008, Warren Buffett, told CNBC, “I would say, by any commonsense definition, we are in a recession." When the richest guy in America speaks about anything financial, I tend to listen.

What does this mean for us in library world, both for our libraries and personally?
· As discretionary income decreases, more people may tend to use the library – why buy the book when I can read it for free?
· Patrons may come to the library to learn more about budgeting, finances, and saving for retirement.
· There may be a lag, but property tax revenues to local governments may not grow as quickly.
· Will I get a raise this year?

Keep watch for answers and tips on surviving these difficult financial times.