Why does Barak Obama say we're in a recession when we are not?

Question

The definition of a recession is 2 consecutive quarters of decline in real GDP. Which 2 quarters would that be? That has not happened. You can call the current economic state many things but it clearly does not meet the criteria needed for a recession.

Answer 1

Barak Obama says we're in a recession because it helps his case against McCain.  McCain's weakness is economic policy and many believe he would simply continue President Bush's policies, which most people believe led the U.S. to its current economic slump (but NOT a recession).  By stating that we are currently in a recession, Mr. Obama is trying to discredit Republican economic policy to gain more votes come November.

Answer 2

Some people (idiots) would call a recession two consecutive quarters of decline in growth of real GDP, rather than actual decline in real GDP.

E.g. they would say that if in the first quarter the economy grew by 2%, then in the 2nd quarter it grew by only 1.5% and in the third in grew by only 1% they would argue that this is a recession. IT IS NOT.

I have no specific US data but I would imagine that a situation similar to the one I have outlined above currently is present in the US, and this might explain Obama's comments.

Answer 3

It's a political trick, our last recession was November 2001-November 2002 but 2008 has a strong chance to contain another recession.

Answer 4

Unemployment's increasing, and inflation's getting up there.  No, it does not meet the traditional definition of a recession, but it is a growth recession.

Answer 5

politics shmolokits