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To: Dr. Pritchett

“I’ve been wondering for a while now why everyone keeps calling it a ‘recovery’ at all!!?”

It’s economics jargon, with a more or less precise formal technical definition. If the economy has negative growth (whatever that stupid term means; it’s not growth if it’s negative, it’s shrinkage) for two consecutive quarters, or whatever, according to whatever official measure they use, we’re in a recession. If it stops shrinking, we’re in recovery.

Doesn’t matter how many people are unemployed, how much we’re inflating, how many sectors of the economy are still shrinking, etc. So long as the macroeconomy has stopped getting worse, they call it “recovery.”


28 posted on 04/19/2012 4:55:15 PM PDT by Tublecane
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To: Tublecane
Take out inflation and the increases in government spending and what I call real GDP has been stagnant, if not negative.

This is why we have a "jobless recovery." There has been no real economic growth, and the reported increase in GDP is nothing more than a false positive.

The press may not report it this way, but the people instinctively feel it, even if they know nothing about economics.

68 posted on 04/20/2012 7:36:08 AM PDT by CharacterCounts (A vote for the lesser of two evils only insures the triumph of evil.)
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