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Economy
In reply to the discussion: STOCK MARKET WATCH -- Friday, 1 June 2012 [View all]Demeter
(85,373 posts)4. What We Talk About When We Talk About Recession
http://www.businessweek.com/articles/2012-05-30/what-we-talk-about-when-we-talk-about-recession
Three years after the Great Recession ended, 71 percent of small business owners indicated they believe the United States economy is still in a recession, according to a survey (PDF) of just over 1,000 of them released on Wednesday, May 30, by U.S. Bank (USB).
The recession that started at the end of 2007 nearly doubled the unemployment rate, crashed the stock market, and wiped out some of the nations biggest banks before it ended 18 months later, in June 2009. But it did end, and for three years the economy has been growing, if haltingly. Why the disconnect?
One reason for the confusion is that economists speak a different language than most business owners (and most other people). To economists, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real [gross domestic product], real income, employment, industrial production, and wholesale-retail sales, according to the National Bureau of Economic Research, which officially designates when a recession begins and ends.
That wonky definition doesnt necessarily match how people perceive the economy, says Richard DeKaser, deputy chief economist at the Parthenon Group consulting firm. Its not uncommon to see these kinds of dramatic disconnects between experiences and perceptions, he says. Even though an economy may technically be expanding, as it has now for three years, most people feel the economy is in a recession if its operating below full employment or its full potential...
AND OF COURSE, REALITY IS JUST YOUR LYING EYES, VERSUS THE PURELY MATHEMATICAL ECONOMIST MODELS...
Three years after the Great Recession ended, 71 percent of small business owners indicated they believe the United States economy is still in a recession, according to a survey (PDF) of just over 1,000 of them released on Wednesday, May 30, by U.S. Bank (USB).
The recession that started at the end of 2007 nearly doubled the unemployment rate, crashed the stock market, and wiped out some of the nations biggest banks before it ended 18 months later, in June 2009. But it did end, and for three years the economy has been growing, if haltingly. Why the disconnect?
One reason for the confusion is that economists speak a different language than most business owners (and most other people). To economists, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real [gross domestic product], real income, employment, industrial production, and wholesale-retail sales, according to the National Bureau of Economic Research, which officially designates when a recession begins and ends.
That wonky definition doesnt necessarily match how people perceive the economy, says Richard DeKaser, deputy chief economist at the Parthenon Group consulting firm. Its not uncommon to see these kinds of dramatic disconnects between experiences and perceptions, he says. Even though an economy may technically be expanding, as it has now for three years, most people feel the economy is in a recession if its operating below full employment or its full potential...
AND OF COURSE, REALITY IS JUST YOUR LYING EYES, VERSUS THE PURELY MATHEMATICAL ECONOMIST MODELS...
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Barney Frank: Obama Rejected Bush Administration Concession to Write Down Mortgages
Demeter
May 2012
#5
Missed the greatest opportunity this nation has seen in almost a century.
Egalitarian Thug
Jun 2012
#90
You'd think they'd learn how to make better tasting jelly after all these years.
Fuddnik
Jun 2012
#44
Retirement: Where Corporate Executives Make the Real Big Bucks by: California Labor Federation
Demeter
Jun 2012
#16
Anyone willing to bet that the US markets finish in the black today, though? esp. after Europe close
Roland99
Jun 2012
#39
U.S. adds 69,000 jobs in May; jobless rate 8.2% (March and April *both* revised down)
Roland99
Jun 2012
#34
JOBS REPORT DISASTER: JUST 69K NEW JOBS CREATED, UNEMPLOYMENT RISES, DOW PLUNGES 2.2%
xchrom
Jun 2012
#43
Good Gawd! It got worse there! It's like arguing with a Republican 10 years ago over WMDs!
Roland99
Jun 2012
#105
The price of a do-nothing Congress: Government layoffs, budget cuts making matters worse
Demeter
Jun 2012
#98
17 min. left for the rescue and still languishing just a bit above the daily lows.
Roland99
Jun 2012
#117
It's one of those "well, I really know better but couldn't resist" kinda things
Roland99
Jun 2012
#116