April 30, 2008
GDP says: Quit that recession talk
While things are certainly difficult for a lot of Americans right now, I wish we would put the notion of a recession behind us for a bit. The economy continued to grow in the first quarter, which means we're at least six months away from declaring a recession. Odds are, by that time, we won't be suffering from the same problems.
WASHINGTON - The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses alike to hunker down. The country’s economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported Wednesday. The statistic did not meet what economists consider the definition of a recession, which is a contraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if slightly. Many analysts were predicting that the gross domestic product (GDP) would weaken a bit more — to a pace of just 0.5 percent — in the first quarter. Earlier this year, some thought the economy would actually lurch into reverse during the opening quarter. Now, they say they believe that will likely happen during the current April-to-June period.
Have you talked about a recession without understanding the definition (two consecutive quarters of GDP drop)? Take three steps back.
Comments
[April 30, 2008 4:28 PM]
Ed S.The more interesting question to those that listen to the media and simply parrot, "We're in a recession.": So what?
What does that really mean to you? Are you going to make any changes in your daily life?
I've been hearing "recession" since the early 90's. I can't remember if there was a short break or not, but that seemed to be the buzzword since I entered college. Recent bad loan problems got many into a tizzy.
But is anyone really changing their lifestyle? My wife and I haven't changed anything. We keep an eye on our jobs to ensure they are stable. We pay our bills. We don't spend beyond our means (including mandatory saving), and we enjoy modest recreation.
Am I supposed to stock up on milk and bread like everyone does when the word "snow" barely graces the weather forecast?