Difference between revisions of "Recession"
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| − | A '''recession''' is | + | 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.<ref>[https://www.thecentersquare.com/texas/dallas-fed-global-recession-seems-unavoidable-if-russian-sanctions-continue/article_7b73f576-b461-11ec-bc33-9305624abb95.html Dallas Fed: Global recession 'seems unavoidable' if Russian sanctions continue],By Bethany Blankley | The Center Square contributor Apr 4, 2022.</ref> 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. |
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| + | 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."<ref>[http://www.investopedia.com/terms/r/recession.asp Recession]</ref> | ||
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| + | 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. | ||
| + | [[File:Employed.jpg|thumb|400px|job growth 1960-2009, with recessions in gray]] | ||
| + | |||
| + | 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.<ref>See [http://www.nber.org/cycles.html US Business Cycle Expansions and Contractions]</ref> | ||
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| + | 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|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== | ||
| + | *[[Biden recession]] | ||
| + | * [[Recession of 2008]] | ||
| + | * [[Bank run]] | ||
| + | * [[Financial Crisis of 2008]] | ||
| + | * [[Great Depression]] | ||
| + | * [[Panic of 1837]] | ||
| + | * [[Panic of 1893]] | ||
| + | * [[Panic of 1907]] | ||
| + | |||
| + | ==External links== | ||
| + | * [http://www.nber.org/cycles.html US Business Cycle Expansions and Contractions], official NBER dates | ||
| + | |||
| + | ==References== | ||
| + | <references/> | ||
[[Category:Economics]] | [[Category:Economics]] | ||
| + | [[Category:Economic History]] | ||
Latest revision as of 02:59, 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.[2] 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."[3]
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.[4]
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
External links
- US Business Cycle Expansions and Contractions, official NBER dates
References
- ↑ Money magazine
- ↑ Dallas Fed: Global recession 'seems unavoidable' if Russian sanctions continue,By Bethany Blankley | The Center Square contributor Apr 4, 2022.
- ↑ Recession
- ↑ See US Business Cycle Expansions and Contractions