Is the US economy in a recession?

Question

That's all I heard all spring and summer but I just read that the economy grew by 3.3% during the second quarter 2008.

Is an annualized growth rate of 13.2% what economists consider a recession?

Answer 1

Two consecutive negative quarters (GNP) is a recession. Have you had that?;-p

Answer 2

Obama supporters think we are

Guess they took a different economics course than the rest of us

It is impossible to have economic growth and be in a recession at the same time

To the one poster

The report is a quarterly report not an annual one

Answer 3

No it is not a recession.  A recession is 2 consecutive quarters of negative growth.  (exept for the 2001 recession)

I am afraid that if a particular political party does not stop using the R word we will be in one.  Consumer confidence is an important part and driving it down with fear can ultimatly lead the economy into a recession.

One comment is that the 3.3% is annually adjusted.  So the anualized growth rate is 3.3%.  

Answer 4

No, we are not in a recession.  But the middle class is evaporating and becoming increasingly more strained.  Also, although we have had a good week in the markets, the financials and housing are still getting killed.  They are two of the most critical sectors in our economy...until they rebound, the economy will continue to struggle and remain in a down turn.  Not a recession...but it is still an unstable economy.

EDIT: No.  In capatalism there has to be a middle class, along with a rich person for every poor person.  The working class is the "soul" (if you will) for the economy.  It isn't getting richer...it's getting poorer.  Without a healthy middle class, whom are the main consumers, how does one deal with with the inflation and lack of production?  

http://blog.aflcio.org/2007/03/09/rich-g...

Now...since '06,  yes, there are many middle class homes getting richer and moving up in the world. Which is the essence of capitalism.  This article (http://www.examiner.com/a-347382~Jay_Amb... covers that.  Take that as you will...I don't see how the working class getting poorer is ever a good thing.

Answer 5

Brian, sorry to tell you are if your living in the USA and your all in for a really rough ride in October. The US media hasn't released the truth to all of you back home in the USA.

The US has been in recession since 2001, this is why many US company's joined the conga line and have left the USA. No magic wand or new president is going to stop what is going to happen in October. A lot of us have left the US and are working overseas. I'll be suprised on how many people will be able to afford Halloween Candy or even heating their homes this winter.

Billions of foreign people have  embargoes on all US made products, produce. franchise and exports. Which has caused unemployment and job cut backs in the USA which is going to snowball.

So Becky isn't going to get her braces for her over bite and Bobby Lee isn't going to get his Ipod this Christmas. Just buy only what you need and save all the cash you can and not in banks. Believe anyone who tells you it ain't going to be turkey this thanks giving, because it's true.

Answer 6

The 3% number is the annualized number.  But, to answer your question, no we are not in a recession.  We haven't even had one quarter of GDP decline yet, much less two back-to-back quarters.  Unfortunately, a significant amount of the GDP growth is because of commodity price inflation, a worldwide phenomenon.

Answer 7

The 'economy' grew, but that doesn't mean the benefits of the economy grew for all hands.  For the last five to six years any growth in the national pie has gone to a small slice of the american population.  Certainly 'on the average' we're all better off, but the 'average' doesn't really tell the story.  If a teacher, a cop, a mechanic and a truck driver were in a room their 'average' income would be about 40 grand.....not too bad.  Suddenly Bill Gates walks into the room.  Suddenly the 'average' income in the room rises to several million.  Is the teacher, the cop, the mechanic and the truck driver better off?  Of course not.  Essentially that's what's happening in our 'economy'.  The rich are getting richer and because of the rise of the price of essentials like, fuel, groceries and medical care, the teacher, the cop, the mechanic and the truck driver are not near as well off as before the advent of 'trickle down' economics.  In the real world of the middle class it's not at all like the nonsense you hear on right wing radio....the debt keeps rising, the social and physical infastructure keeps degrading, the two wars continue burning through lives, limbs and borrowed money, jobs continue to be exported and the blue and increasingly white collar middle class continues to experiance hard times.  Give it a think!    

Answer 8

The economy is fine. Democrats are lying b******s.

Answer 9

Possibly. Did you hear that annual income went down by 2,000 bucks the past 8 years! AS compared to going up (like it is supposed to) 7,000 bucks with Clinton!