A Recession Confession

If you take a gander at some definitions of things we talk about, it makes the discussion a bit more palatable.


Recession: The Newspaper Definition

The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters.

This definition is unpopular with most economists for two main reasons. First, this definition does not take into consideration changes in other variables. For example this definition ignores any changes in the unemployment rate or consumer confidence. Second, by using quarterly data this definition makes it difficult to pinpoint when a recession begins or ends. This means that a recession that lasts ten months or less may go undetected.

Recession: The BCDC Definition

The Business Cycle Dating Committee at the National Bureau of Economic Research (NBER) provides a better way to find out if there is a recession is taking place. This committee determines the amount of business activity in the economy by looking at things like employment, industrial production, real income and wholesale-retail sales. They define a recession as the time when business activity has reached its peak and starts to fall until the time when business activity bottoms out. When the business activity starts to rise again it is called an expansionary period. By this definition, the average recession lasts about a year.

So what we are experiencing today, economically, is definitely not a recession.

We are experiencing a nationwide strike by employers and business people who refuse to re-invest or hire until we are rid of our first truly communist president, who just happens to be a complete incompetent, as well.

Obama is exposed for all to see since last Friday with that cocky, “You ain’t nuthin” teleprompter-less, free range confession.

A recession would have been over by now if government spending, borrowing, and printing of paper money were any cure. But it isn’t, never has been, and never will be.

Obama ain’t nuthin no more. The sing-songy oratory falls flat. His audiences sit like zombies listening to drivel and for any hint of when to applaud. Then they stagger home to wait for some form of government payout. Ho hum. No “Big Mo” this cycle. And to top it off, Sarah Palin, with a flip of her locks, can still draw a bigger crowd of voters who are not on a direct government subsidy. That means motivated voters, voters who will make the effort to come out in 2012 and vote against Barack Obama, like they have been waiting to do since March of 2009.

America’s King Hussein will not be re-elected because…

Everyone with half a brain knows business people will not re-invest, hire, or start a new business if the White House is still trying to extort those greedy rich (white) people (your neighbors and you if you have a job) to buy votes – like our country is one big Chicago ward.

The lightning of an unknown communist poser struck once. That was all America needed for a wakeup call.