The statement from “Top” economists that the recession officially ended in June of 2009, got me to put my “Thinking cap” on. I remembered the old adage, “If you tell a lie often enough, people will begin to accept it as the truth”. What is the truth about our economy?
According to the National Bureau of Economic Research (NBER), recession is defined as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production and wholesale-retail sales". More specifically, recession is defined as when businesses cease to expand, the GDP diminishes for two consecutive quarters, the rate of unemployment rises and housing prices decline.
Well… according to government figures, there has been a slight rise in the GDP in the past two quarters. I think the claim that the “Recession” has ended is based on that. Still, I have not seen a lot of positive change.
My analogy would be, “Say you had fallen into a real deep hole and could not get out, then someone threw down a brick for you to stand on. You would be a little closer to the top, but would still be in a real deep hole and unable to climb out.” That is where the American economy is. Way too many people are out of work. Millions are earning less. Interest on our foreign debt is huge. We are definitely still standing in a hole.
It reminds me of the ending of the fairy tale, “The Emperor’s New Clothes”. Ripped off by a con man, the Emperor was strutting around naked. Nobody had the courage to tell him the truth.
Today’s economy is shot, it’s an election year. The party in power wants, with all their hearts for this recession to go away. Some “Top Economists” announce, “The recession is over everyone, you can start spending now".
From the edge of the happy crowd, I can hear a small child shout, “Look mommy, the Emperor is naked. Where are his clothes”?
Here is the article I was referring to.
Recession not over, public says
By Alan Silverleib, CNN
September 26, 2010 12:02 p.m. EDT
Seventy-four percent of Americans believe the economy is still in a recession.
Washington (CNN) -- Economic experts may believe the recession is over, but try telling that to the public.
Seventy-four percent of Americans believe the economy is still in a recession, according to a new CNN/Opinion Research Corporation poll. Only 25 percent think the downturn is over.
One-third of Americans say the recession is serious, while another 29 percent characterize it as moderate.
One small cause for optimism: the percentage of Americans who say the country is in a recession has dropped 13 points since August.
The National Bureau of Economic Research, an independent group of economists, released a September 20 statement indicating the recession technically ended in June 2009. The dip began in December 2007 -- making it the longest and deepest downturn for the U.S. economy since the Great Depression.
Administration officials, while sounding guardedly optimistic about overall trends, have repeatedly expressed concern for those impacted by the sluggish economy.
"Obviously, for the millions of people who are still out of work, people who have seen their home values decline, people who are struggling to pay the bills day to day, [the recession is] still very real for them," President Barack Obama said last week.
The public appears split over the effectiveness of Obama's economic policies. Forty-seven percent of Americans believe the president's policies either have helped boost the economy or will make it better in the future. Forty-eight percent believe Obama's policies will never help improve the economy.
The CNN/Opinion Research Corporation poll was conducted September 21-23, with 1,010 adult Americans questioned by telephone. The survey's overall sampling error is plus or minus three percentage points.
CNN's Keating Holland and Chris Isidore contributed to this report.
My name is Patrick M McCormick and I have created this blog as a platform for my political views as well as those of select contributors.
I believe that American Politicians have lost sight of their goal: To uphold the Constitution and protect the rights of the people of the United States. They argue and bicker on the floor of their respective houses, positioning themselves for the next election, while they accomplish very little business for the citizens of this country.
Meanwhile our economy is sliding downward. Millions of our precious jobs have have been exported overseas. Our social safety net and other public services are being cut. Our middle class is rapidly disappearing and the numbers of citizens existing below the poverty line is increasing dramatically.
I plan to examine the causes of these terrible changes to our American way of life. Your comments will help us all arrive at some important conclusions.