Yes, the economy has slowed down due to the housing market decline, the credit meltdown, and high oil/food prices. But, according to a report today, the economy’s GDP still grew 0.6 percent. No, it’s nothing special, but it does bring out one point. By definition, we are NOT in a recession.
The definition of recession from Investopedia.com:
A significant decline in activity spread across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s gross domestic product (GDP).
We have not had two consecutive quarters of negative GDP growth, so we can’t be going around saying, “oh, this recession sucks”. It’s not true. We’re not in a recession. You don’t call every car that you see a Toyota. You call it a car, because that’s what it is. We are experiencing an economic slowdown, not a recession. The media just likes to throw that word around because it’s become a political word due to its negative connotation.
Okay, I got that off of my chest. You can go back to caring about more important things.