Recession, recession, where is the recession?

May 4, 2008 by

recessionI know the economy is not in the greatest condition. Sure the price of gas is at an all time high, the price of food is climbing, and foreclosures are epidemic. But those factors do not add up to a recession. I hear the word recession used constantly without regard to the fact that the economy is not in a recession. In a recent CNN poll, 75% of the respondents said that the economy was in a recession. On TWIT (This Week in Tech), Leo Laporte and another guest said that we were in a recession. Luckily two other guests on the show were quick to point out that the economy was in fact not in a recession. But the Democrats want you to believe that we are in a recession. We are in a recession they say, and only the Democrats can save the economy. Don’t vote for the Republicans because they are the ones who put us in a recession. It seems that if enough people scream the R word that everyone will start believing it. I will grant that the economy may be stagnant, or growing at a slow pace, but it is not in a recession. A recession is defined as:

A period of general economic decline; specifically, a decline in GDP for two or more consecutive quarters.

There has not been a decline in GDP for any quarter this year. Granted that the definition of a recession should also include changes in the unemployment rate or consumer confidence, but even when including both indicators it is not accurate to state that the economy is in a recession. I wish that people would not attempt to paint something as what it is not just so they can promote an agenda. When the economy is in a recession, say so, if not don’t call it what it is not. Quit trying to frighten people or mislead them by distorting the facts. People need to stop taking for granted what others say and use a little common sense and think things through for themselves before deciding on the validity of something.

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