Recession is over. But we still have a long recovery.
By Jennifer Northway
The recession is over! These are the words that all of America desperately wants to hear. But what most people don’t realize is that it already might be. Alia McMullen of the Financial Post states that the recession ended in the third quarter gross domestic product. There is a rise in sales, which starts the whole economic cycle all over again, and this time instead of a downward spiral, things are looking up. Though there is a rise in the GDP, that does not mean that the U.S. economy is soon going to bounce back to its original state overnight. Economists are curious to see if GDP will continue to grow considering all the various government actions to boost the economy, but hopes are high.
I think this country is in the process of a turnaround, and I am optimistic about the future. This stated, I do not think things will get better anytime soon. The economy is moving in the right direction, but it will still take an extremely long time to be back at the economic high that was norm previously. I think unemployment will stay high, sales will stay down, and many industries will remain inactive. But there is hope because the recovery has already begun. If you would like to read more of what Alia has to say, check out www.financialpost.com and search U.S. Recession Comes to an End.
Look around. Does it look like the recession is over?
By Gavin Kirkwood
The United States recession is not even close to ceasing. In the third quarter of 2009, the world’s largest economy grew (GDP-Gross Domestic Product) 0.9 perent to an annual rate of 3.5 percent. Though this may seem like an improvement, we should consider where that increase is coming from. Most of the growth in our economy is still being fueled by loads of government spending. We see examples of this spending in the “Cash for Clunkers” program, and the $8,000 tax credit should you find yourself in the fortunate position to purchase a home. These programs are all nice and help the average consumer out, but they are being funded by tax payers, and in the long run this could do more damage than good.
Another reason we can know the recession is not over is actually quite simple: I don’t see hoards of people shopping or going out to restaurants like they did before the recession hit. The most important indicator to our economy is for the people of the United States to become mass consumers again. This holiday season is sure to expose the weakness in this so-called recovery.
Once the consumers come back into this economy, then I will believe what the so-called experts are saying. Until then, be wary of what you read. Just look around you to see if the recession is truly over. I have a feeling you will be able to tell.
