I believe that we are in a depression. This is covered by a few thoughts 1) we are wealthier overall as compared to the previous depression so that the drop in wealth does not result in people literally starving to death although the general drop in wealth may be the same as the great depression. 2) inflation (increase in money supply) is occurring one way or another. Deficit spending can only be an increase in functional money supply. I believe that this is currently being masked by deflation that is not currently occurring due to the increased money supply. 3) Capital investment is clearly reduced “depressed” as compared to any “stable” period.