The economy is doing great. Up in all areas in Q3. Why does media keep saying we are in a recession?

Question

http://www.123jump.com/economy-story/Gross-Domestic-Product-Rises-4.9-in-Q3/23828/

Answer 1

Q3 was last quarter, Q4 is now. The funny thing about a recession, you don't really know you are in it (2 consecutive quarters of falling GDP) until you are out of it or coming out of it.

Answer 2

I don't recall anyone saying that we are in a recession. Certainly there is talk of a possible slowdown, otherwise there wouldn't have been a rate cut by the Fed today. Gas prices must have had an impact.

But recession might be a strong word. And don't forget, it's political season, which means it's in some interests to downplay economic good news, and upgrade bad news. There are lot of numbers out there, and you can pick and choose the ones you like.

Answer 3

Because the media, and the ordinary person, have very different definitions of "recession" than the official economic definition.

Economists define recession in terms of inflation, productivity, unemployment, and other such statistics.

But to most people, none of that means squat.
Are you working longer hours for the same or less pay than you were 5 years ago?
Do you know a lot of people who, while they may have a job, have a crappier or lower-paying job than they had 5 years ago?
When the economists say "productivity is up", what that really means is companies are doing with fewer employees, making them work more hours, and paying them the same. Is that happening to you?

If we stopped playing games with the economic numbers, by doing things like keeping the war expenses out of the computation for the actual budget deficit, would our national budget be even more horrendous than it is? Yes.

Our dollar has devalued like crazy against the Euro. The price of crude oil would in fact be almost level over the past year if we measured it in Euros instead of U.S. dollars. Oil and gasoline have actually skyrocketed in price here largely because our dollar is worth crap, not because the actual cost of oil has gone up that much.

The positive-spinners like to point to the surging value of the stock market. Well, take that Dow Jones index and adjust it for even nominal inflation over the past 7 years (Bush's term), and you'll see that the stock market is still crap compared to where it was when he started. The index "number" in meaningless if you don't take the passage of time and inflation into account.

Where I'm coming from:
I'm a well-paid computer engineer. I have not lost my job. As most people go, you'd probably say I have it pretty darn good.
I voted for Bush the first time, Nader the second time, because Bush was a total disappointment to me (but Kerry is a nitwit as well.)

Look around ya, folks. Economically, you have been treading water for 7 years. In terms of real dollars, real salary increase, real time you have to spend at work, if you have actually made any real progress, you are in quite a lucky minority indeed.

As far as I'm concerned, all of the above means we have been in a recession for years, whether you want to call it that or not.

Answer 4

The third quarter's numbers have been in simple terms revised downward to 2.8% (it became no longer 3.5% as were suggested). 2.8% improve can very almost completely be attributed to the porkulus courses (government stimulus) so devoid of that evidently there has been little or no improve. Unemployment will improve confirmed a short-term pause by way of short-term seasonal hiring (all those Christmas workers would be enable bypass returned) and human beings dropping off of the governments info because of the fact they have been unemployed see you later (the numbers are rigged). by way of the previous way of calculating unemployment we are already at 17% - 20%. The Dow is being artificially inspired by way of wall street/government collusion and a low-priced money coverage. because of the fact the dollar loses fee, different sources bypass up in dollar words.

Answer 5

I guess I must be one of those "millionaires" another answer provider referred to. But, I'm not. My investments have done O.K., but not a spectacular growth compared to previous years. But, compared to the Carter years, any other comparison is favorable.
You must keep in mind that the media completely ignored the fact of Ronald Wilson Reagan possessing a bachelor's degree in economic (the only President to have one). As long as the media "experts" see one person pan-handling on the streets of D.C. or NYC, they think the economy stinks. They are afflicted with a severe case of tunnel vision.

Answer 6

Must be nice if you are friend of Bush and Republicans. Try living on fixed income month to month. With rising gas prices day in day out, cost medicine, food and other necessities of life.

Answer 7

Good news doesn't sell ads. Notice how the fires in San Diego have disappeared as a story but we still hear about Katrina.

Answer 8

because good news does not sell. the media delights in reporting bad news so as to knock the administration in office. of course they are all biased liberals so what do you expect.

Answer 9

It's only great for millionaires, billionaires, and foreigners. Subtract out that 10 trillion dollar debt, look at the falling dollar, - and it isn't looking so good.