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To: SlapHappyPappy

Higher prices of “core products” do not comprise a recession under any measure. If I used to spend $150 a month on gasoline and now I’m spending $300 per month, that extra $150 has to come from somewhere. Maybe I reduce my spending on movies, ballgames, cable TV, etc. by $150 . . . but my miniscule contribution to the nation’s GDP hasn’t changed at all.


92 posted on 04/08/2008 4:57:08 PM PDT by Alberta's Child (I'm out on the outskirts of nowhere . . . with ghosts on my trail, chasing me there.)
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To: Alberta's Child
Higher prices of “core products” do not comprise a recession under any measure. If I used to spend $150 a month on gasoline and now I’m spending $300 per month, that extra $150 has to come from somewhere. Maybe I reduce my spending on movies, ballgames, cable TV, etc. by $150 . . . but my miniscule contribution to the nation’s GDP hasn’t changed at all.

Heck, I bet you could even drive down food prices if you ate out of a dumpster.

94 posted on 04/08/2008 5:00:28 PM PDT by bjs1779
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To: Alberta's Child

No, but that is an example of first how government reports do not accurately reflect economic reality and, second, an event which can lead to a recessionary environment.

Economic growth depends on discretionary spending, and higher costs of necessities reduce discretionary spending.


97 posted on 04/08/2008 6:07:18 PM PDT by SlapHappyPappy
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