Comments on: U.S. Economy Officially in Recession

By: Jason

Jason — Wed, 03 Dec 2008 01:21:23 +0000

According to Keynes, the root cause of an economic downturns is an insufficient aggregate demand. When the total demand for goods and services declines, businesses throughout the economy see their sales fall off. Lower sales induce firms to cut back production and to lay off workers. Rising unemployment and declining profits further depress demand, leading to a feedback loop with a very unhappy ending. 90% of the time you can make statistics show whatever you want 50% of time.

By: Tim

Tim — Wed, 03 Dec 2008 00:00:43 +0000

woohoo! yippy! let’s party! god, it’s about time, i was sick of hearing over and over again that we are going into recession, we may be in a recession, we are probably in a recession. it was tiresome.

By: Nick

Nick — Tue, 02 Dec 2008 20:14:45 +0000

The fact that they came out and officially stated it was a recession doesn’t change much. People know times are tough for them, they don’t need economists to tell them that. They could have discovered that the economy was expanding, and I still don’t think that would have changed much for people.

By: Craig

Craig — Tue, 02 Dec 2008 20:07:33 +0000

It’s crazy that they had to officially announce it today, like no one knew. I was listening to the radio this morning and heard an interesting fact. Since WWII, no recession has lasted over 16 months. If you start at last Dec, we are at month 12, do you think we have 4-5 months left? some predict the summer, some a few years, how do we know for sure?

By: WiseMoneyMatters

WiseMoneyMatters — Tue, 02 Dec 2008 19:30:12 +0000

Meh. The economy has been jumping up and down over the past few months but it hasn’t been plummeting in a while. I see only positive growth over the next several years barring any craziness from our government. The growth in sales over Black Friday is a good sign that things are starting to turn around.