Ryan
Dec 9th, 2008
Dec 9th, 2008
Official but not Classic: the Recession Declaration
CNNMoney.com reports that the National Bureau of Economic Research declared the nation in recession–since December 2007.
While this is official, it certainly doesn’t meet the classic definition of a recession, meaning two consecutive quarters of negative economic growth (the official, latest numbers have the U.S. currently at one quarter of negative economic growth and counting). That said, the economy has certainly been acting like we’re in a recession for some time regardless, so the declaration is really academic.
So now, even if it doesn’t meet the classic definition, at least now we can say, officially: the U.S. is in recession.
Does it really help to discuss whether we are really in a recession or not?
Much of the media talk about the economic situation serves to make it more that way. Why? People have too much faith in the media and believe what they hear; a self-fulfilling proclamation.
Imagine if people instead responded with, “Maybe it is, maybe it isn’t”, and kept on living responsibly. Likely the economy would not nose-dive to the same degree. On the other hand, I am making the assumption that people live responsibly. (Also imagine if people ignored the media about 75% of the time they currently pay attention to it. Big changes would take place, and probably for the long-term good.)
Money Hacks Carnival – I’d rather be surfing…
This is the 43rd edition of the Money Hacks Carnival, the “I’d rather be surfing” edition.
Welcome to Liberta. I’m Francois Viljoen and I’ll be your host. I’m 27 and I live in South Africa.
I don’t really like …