Monday, 1 December 2008

The dreaded recession, one year on

At last, the recession is made 'official'; officially the US economy has been in recession for a whole year.

Forbes reports:

The keeper of the business cycle books, the National Bureau of Economic Research, announced Monday what economists have been saying for a long time--this is a recession. And, NBER says, it's been a recession since December of 2007.


The economic crisis is putting a stranglehold on the global economy in general and the American economy specifically, but I may just have to verbally assault the next person who compares it to the Great Depression. What we're looking at is NOT the Great Depression, but at the same time it's no temporary (i.e. a few months) downturn either.

And while we're all looking after our money and jobs, let's also keep the environment in mind. It's priceless. Even if you're constrained to thinking in terms of money, imagine the long-term economic devastation from lost of usable soil, pollution, lost of forestry, etc. not to mention global warming.

2 comments:

Jason said...

According to Keynes, the root cause of an economic downturns is an insufficient aggregate demand. When the total demand for goods and services declines, businesses throughout the economy see their sales fall off. Lower sales induce firms to cut back production and to lay off workers. Rising unemployment and declining profits further depress demand, leading to a feedback loop with a very unhappy ending.

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Mberenis said...

In a recession, it isn't always bad. Most people don't realize how much money there is out there. During economic times like this, there is more money to be had than ever. Because of the bailouts and economy, lenders are bending over backwards to bail you out too. Believe it or not, there is people getting tons of cheap money nowdays to start businesses, buy homes, pay off debt, and more. Recession Bailouts for YOU