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Growth recession occurring even though Recession finishing a year ago


Growth recession occurring even though Recession finishing a year ago

Numerous say the U.S. is in a recession. Technically, that is not the case with the definition of the word. Monday, the government announced that June 2009 was when the recession officially ended, even though the economy is still terrible. This has been the longest slide since World War II as the economic downturn lasted 18 months after starting in December 2007. The "Great Recession" was the name of the economy's downfall the last few years before it was over. The economy is growing, but that doesn't mean it will be back to normal anytime soon. The Federal Reserve is hoping that the economic expansion won't be too slow to stem rising joblessness with a "growth recession".

Recession vs. Depression

The economy growing again showed that the longest economic downturn since the Great Depression was over. The National Bureau of Economic Research tells us this. If there were a double dip or relapse, it would be considered a new recession, claims the Los Angeles Times. The 18-month Great Recession is the official runner up to the 43-month Great Depression that lasted from 1929 to 1933. There were two recessions tying for 3rd place. These were in 1973-75 and 1981-82. The labor market may not recover fast enough as 8 million lost their jobs. The NBER said probably the most damaging factors in this economic downturn was rapid productivity expansion, which deleted jobs as output was marginally sustained.

Numerous on the street show the Economic downturn is alive and well as it has ended on paper

The expansion that is being seen may not be enough to do anything, states NBER. NEBR defines a recession as, as outlined by the Washington Post, "a period of falling economic activity spread across the economy, lasting more than a couple of months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales." Since June 2009, GDP and industrial production completely bottomed out. Employment, however, did not begin expanding until December 2009. The NEBR said that by declaring a specific date for the end of the recession it was not saying that economic conditions have been favorable since then.

Interesting facts about the expansion recession

The growth recession is shown as the unemployment rate weakens while the economy expands. As outlined by Bloomberg, Within the first quarter, there was a 3.7 percent expansion while it dropped in 2010's second quarter to a 1.6 percent annual rate for economic expansion. Many were excited when they heard the fourth quarter of 2009 showed a 5 percent rate of growth. Unemployment rates are stuck at rater higher than 9.5 percent. This has made it hard for the economy to grow without consumer spending. Fed chairman Ben Bernake claims the economy may be healed. This would take tools the agency has. Many think the Fed should buy more government debt or treasuries since interest rates are near zero. Other individuals have the idea that giving jobs to American's would benefit them one of the most.

More on this topic

Los Angeles times

latimes.com/business/la-fi-recession-20100920,,4014811.story

Washington Post

voices.washingtonpost.com/political-economy/2010/09/its_official_the_great_recessi.html

Bloomberg

bloomberg.com/news/2010-09-19/escaping-double-dip-to-growth-recession-means-no-unemployment-relief-seen.html

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