Posted on 07/26/2022 1:42:50 PM PDT by Oldeconomybuyer
WASHINGTON (AP) — By one common definition, the U.S. economy is on the cusp of a recession. Yet that definition isn’t the one that counts.
On Thursday, when the government estimates the gross domestic product for the April-June period, some economists think it may show that the economy shrank for a second straight quarter. That would meet a longstanding assumption for when a recession has begun.
But economists say that wouldn’t mean that a recession had started.
The definition of recession that is most widely accepted is the one determined as “a significant decline in economic activity that is spread across the economy and lasts more than a few months.” The committee assesses a wide range of factors before publicly declaring the death of an economic expansion and the birth of a recession — and it often does so well after the fact.
So if we’re not in a recession, what’s going on with the economy, which is sending frustratingly mixed signals?
Even if growth does go negative for a second straight quarter, Fed officials and Biden administration economists point to a lesser-known measure called “gross domestic income.”
GDP calculates the value of the nation’s output of goods and services by adding up spending by consumers, businesses and governments. By contrast, GDI, as the name implies, seeks to measure the same thing by assessing incomes.
Over time, the two measures should track each other. But they often diverge in the short run. In the first quarter, GDI grew 1.8% — much better than the 1.6% decline in GDP.
As part of its judgment of whether an economy is in recession, the NBER considers an average of the two measures. In the first quarter, the average was 0.2%, suggesting that the economy expanded slightly.
(Excerpt) Read more at apnews.com ...
A recession is when your neighbor loses his job.
A depression is when you lose yours.
When you experience “shrinkflation”, it’s sure sign of inflation. And I’m seeing more than my share of shrinkage
That's the common definition of a depression. A recession is two or more consecutive quarters of negative growth, regardless of how high or how low. We're in a recession, as the GNP figures due out this week will confirm.
I think it was Nixon that said a recession is any time
the American people lose faith in the future...
Leave it to asinine press to obfuscate the issue. Always something in the way of their agenda.
Shrinkflation has been going on for years.
On the cusp of a recession??
Gee… all one has to do is to compare the economy before January 2021 and after…. Yep, it’s been receding since January 20 of that year..
I call THAt a “recession”.
It’s a recession when I have to change my budget because I pay 2x’s more for gas and groceries.
And recovery is when Joe Biden loses his! (to paraphrase RWR)
It’s comical to watch them sing and dance.
If Trump were president right now, they’d have been hawking
“the Recession” for 5.5 weeks by now.
Their boy is a two legged horse, and Trump has six.
These AP idiots think their Jedi Mind tricks will work on general public. Well it probably will on the weak minded (aka Democrats and liberals).
“AP EXPLAINER: How do we know when a recession has begun?’
When Biden and his “experts” say it hasn’t began!
About a month ago I bought a jar of iced tea mix.
It was physically the same size jar as the one I previously bought -
but it was only about 2/3 full of iced tea mix.
No lie.
Add in Gov’t Spending WTF! That’s complete BS! They can just spend themselves away from a recession by that dumb logic.
Are you trying to tell me that the same bunch that can’t define what a woman is are having trouble defining what a recession is?
Rush Limbaugh used to call it “million man math.”
The media will only know after they’re given permission to know by their libtard butt buddies
If a Dem is President, never ... its just a transition.
When the RATS don’t agree with something they change the rules or definitions and give it a new name.
So 1984-ish
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