Sarah asked in Social ScienceEconomics · 9 years ago

Given the current economic crisis in the united states, could north america (including canada) enter a depress?

answer needed ASAP! :)

4 Answers

  • Anonymous
    9 years ago
    Favorite Answer

    We have to separate North America into two different countries to answer this question because the US was in recession between October 2008-October 2009, but Canada was still doing great. The reasons are.

    1. Canada has the finest banking regulation in the world. It didn't need any bail-out or caused any bank-run.

    2. Canada exports are mostly oil and minerals which were not affected much by recession.

    3. Canada is in NAFTA so that trade with the US was going well.

    4. Canada has been doing great in terms of foreign policy, including good relationship with Europe,Japan and even China and India.The US has still to fight with China concerning the currency manipulation.

    5. Many Canadian have posted the questions on Yahoo to show their concern about the US economy. That means the Canadian economy is still doing well.

    Source(s): Anjaree
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  • 9 years ago

    It COULD, but no it won't. If the United States goes into a depression, the world will as well, as our economy is closely intertwined with other countries' economies. The depression occurred largely because of the "Bank Run", where everyone went to the banks to withdraw their money. Now, however, because deposits are insured, that doesn't happen.

    Source(s): M.S. in Economics, Northwestern University
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  • 3 years ago

    It`s no longer each and all the fat cat businessmen. What with regard to the conventional those with basically slightly of cost reductions that they have worked all their existence for. The pastime on their cost reductions is going down and any they might have invested. keep in mind it truly is no longer constantly the money invested that comes from the great boys which you borrow on your mortgages it truly is hundreds of little people who've placed away for a wet day.

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  • Anonymous
    9 years ago

    no, that is not likely. Recession is over. Jobs will pick up once unemployment benefits run out.

    Manufacturing-based areas will indeed continue to deteriorate, but they are less than 10% of economy, so it will not affect the big picture.

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