Dude, Where’s My Recession?

The economy isn’t contracting like the media seems to hope. Gross domestic product increased during the first quarter at a rate of 0.6 percent. Anemic? Yes. Recession? No. Remember that a recession is defined as back to back quarters of negative GDP growth. So far that hasn’t happened, so the earliest we could know for sure that we’re actually in a recession would be in November, just as we enter the Christmas season and just after we’ve elected a new President.

Could it be that the media and all the pundits have a political reason for pushing recession on us? Nah, that never happens… :oops:

Before a recession is declared, shouldn’t the economy actually, I dunno, recess for a bit–at least for a quarter?

One thing I found interesting in today’s news was that exports have rebounded quite strongly. That’s a direct effect of a weak dollar. People seem to forget that a weak dollar makes American products more attractive overseas.

There is always more than one side to every story. I’m going to spend the next few days pondering who benefits from a recession. Maybe that’s who keeps screaming it from the rooftops.

Always follow the money. Remember also that $200 billion is getting mailed out in about 2 weeks. That should spur some spending.

About the author

Ron Haynes has written 1091 articles on The Wisdom Journal.

Ron is the founder and editor of The Wisdom Journal. He has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a partner in a national building materials company.

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