Is it irresponsible to say we are in a Recession?

Question

I just read an article where a presidential candidate said we were deffinately in a recession. Since January it has been a favorite term in the media and other outlets.

Generally a recession is 2 consecutive quarters of negative GDP. (In 2000-2002 we had 3 negative in 5 nonconsecutive and it was called a recession in 2001)

We have not had a negative quarter to date. It appears the first and second quarters are positive for this year.

We can not say until sometime around ignoration day wheather we are in a recession or not right?

I realize some areas and certain sectors are not good, and the growth is slow and should be better.

Can all the irresponsible talk of recession lower consumer confidence and hurt the economy?

Answer 1

Yes, I think it can (to your last question)....Generally when something is on everyone's minds, it tends to happen...since they consciously or unconsciously alter the way they act in response to it...so it definitely would just worsen the situation....in my opinion at least.