Difference between revisions of "Recession"
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| − | A '''recession''' is defined as two quarters (6 months) of negative [[economic growth]] | + | A '''recession''' is defined as two quarters (6 months) of negative [[economic growth]]<ref>[https://money.cnn.com/2008/03/06/pf/minds_over_money.moneymag/index.htm?postversion=2008031312 Money magazine]</ref> such as occurred when the [[Biden regime]] terminated U.S. energy independence and leveled sanctions against the importation of [[Russian]] gas, fertilizers, and food stuffs. The economy ceases to expand, bringing in new workers and increased output, and begins contracting, laying off workers and declining output. [[Unemployment]] increases; output and profits fall; personal income falls. |
A recession ends when positive growth is restored. | A recession ends when positive growth is restored. | ||
Revision as of 01:41, July 26, 2022
A recession is defined as two quarters (6 months) of negative economic growth[1] such as occurred when the Biden regime terminated U.S. energy independence and leveled sanctions against the importation of Russian gas, fertilizers, and food stuffs. The economy ceases to expand, bringing in new workers and increased output, and begins contracting, laying off workers and declining output. Unemployment increases; output and profits fall; personal income falls.
A recession ends when positive growth is restored.
Broader definitions of an economic recession are often used. Investopedia defines an economic recession: "A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession."[2]
There may also be a decline in personal and business optimism, and a decline in the rate of consumption and capital investment in business activity.
Recessions are defined using a number of advanced indicators by the National Bureau of Economic Research, a private think tank that includes both conservative and liberal economists.[3]
As a rough rule of thumb, a recession is underway when there is a decline in gross domestic product (GDP) for two consecutive quarters.
Remedies
Several strategies exist for dealing with recession:
- Keynesian economics indicate deficit spending by government will deal with any short term losses by business.
- Supply-side economics indicate government tax cuts will promote business capital investment.
- laissez-faire economics recommend the government do nothing and not interfere with market forces.
See also
- Recession of 2008
- Bank run
- Financial Crisis of 2008
- Great Depression
- Panic of 1837
- Panic of 1893
- Panic of 1907
External links
- US Business Cycle Expansions and Contractions, official NBER dates