Recession with economic growth?

The economy grew .6%, contrary to the perception that we are in a recession. See Economy Improves, Old Media Ignores. Some are saying that this represents the first time that we have had a recession while experiencing economic growth! Even though a recession MEANS subsequent quarters of no growth.

So is the economy stronger than the doomsayers have been saying it is? I suspect what we have is a paradox in a vast economy, with some sectors in bad shape–unfortunately, those that impact average Americans the most, with high prices for food and fuel and a loss of equity in home values–and other sectors doing quite well (such as oil companies and the farmers who are enjoying record prices).

About Gene Veith

Professor of Literature at Patrick Henry College, the Director of the Cranach Institute at Concordia Theological Seminary, a columnist for World Magazine and TableTalk, and the author of 18 books on different facets of Christianity & Culture.

  • http://gpiper.org/katiesbeer TK

    “Some are saying that this represents the first time that we have had a recession while experiencing economic growth! Even though a recession MEANS subsequent quarters of no growth.”

    It’s the new post-modern definition of recession, no? We’ll have a recession if we FEEL like having one. It suits our purposes. Especially since our latest poll says that 82% of the country is pessimistic about the future.

    I took college statistics, so I know how random samples work. Still, this poll does not represent my views. I never answer phone calls from people I don’t know, so I doubt I would ever get chosen for a poll. Not that they aren’t valid, but I don’t see the usefulness beyond being a vague indicator of patterns over time. This poll does nicely shows past data, though. See here: http://www.washingtonpost.com/wp-srv/politics/documents/postpoll_051208.html

    The Washington Post-ABC News poll was conducted by telephone May 8-11, 2008, among a random national sample of 1,122 adults, including additional interviews with randomly selected African Americans, for a total of 206 black respondents. The additional interviews (commonly referred to as an “oversample”) were completed to ensure there were enough African American respondents for separate analysis; the group was not over-represented in the reported results from the full sample. The results from the full survey have a margin of sampling error of plus or minus three percentage points. Error margins are higher for subgroups. Sampling, data collection and tabulation by TNS of Horsham, Pa.

  • http://gpiper.org/katiesbeer TK

    “Some are saying that this represents the first time that we have had a recession while experiencing economic growth! Even though a recession MEANS subsequent quarters of no growth.”

    It’s the new post-modern definition of recession, no? We’ll have a recession if we FEEL like having one. It suits our purposes. Especially since our latest poll says that 82% of the country is pessimistic about the future.

    I took college statistics, so I know how random samples work. Still, this poll does not represent my views. I never answer phone calls from people I don’t know, so I doubt I would ever get chosen for a poll. Not that they aren’t valid, but I don’t see the usefulness beyond being a vague indicator of patterns over time. This poll does nicely shows past data, though. See here: http://www.washingtonpost.com/wp-srv/politics/documents/postpoll_051208.html

    The Washington Post-ABC News poll was conducted by telephone May 8-11, 2008, among a random national sample of 1,122 adults, including additional interviews with randomly selected African Americans, for a total of 206 black respondents. The additional interviews (commonly referred to as an “oversample”) were completed to ensure there were enough African American respondents for separate analysis; the group was not over-represented in the reported results from the full sample. The results from the full survey have a margin of sampling error of plus or minus three percentage points. Error margins are higher for subgroups. Sampling, data collection and tabulation by TNS of Horsham, Pa.

  • Doug

    I can only speak from my vantage point. Working for Cactus Game Design (maker of such games as Bible Scattergories, Apples to Apples Bible Ed., Outburst Bible edition, the Redemption CCG, and a wide variety of other Christian board games and computer games) I can say that our sales are way off this year. The Christian bookstore market (CBA) has really circled the wagons. I can also say that sales at the Family Christian bookstore chain is WAY OFF in sales compared to a year ago as well. People keep saying we are not in a recession. I wish that were true. I would like to get back up to working 5 days a week again.

  • Doug

    I can only speak from my vantage point. Working for Cactus Game Design (maker of such games as Bible Scattergories, Apples to Apples Bible Ed., Outburst Bible edition, the Redemption CCG, and a wide variety of other Christian board games and computer games) I can say that our sales are way off this year. The Christian bookstore market (CBA) has really circled the wagons. I can also say that sales at the Family Christian bookstore chain is WAY OFF in sales compared to a year ago as well. People keep saying we are not in a recession. I wish that were true. I would like to get back up to working 5 days a week again.

  • http://fivepintlutheran.blogspot.com/ David

    Yes parts of the economy are growing. At the same time run of the mill families are bleeding money everytime they need gasoline to get to work. This has also increased everything else which causes the buying power the shrink even more. This will of course shrink what people will spend on nonessentials out of necessity therefore effect sales of these items such as Doug mentions.

  • http://fivepintlutheran.blogspot.com/ David

    Yes parts of the economy are growing. At the same time run of the mill families are bleeding money everytime they need gasoline to get to work. This has also increased everything else which causes the buying power the shrink even more. This will of course shrink what people will spend on nonessentials out of necessity therefore effect sales of these items such as Doug mentions.

  • WebMonk

    Just a quick clarification – the .6% growth is an annual rate, and this is also an advanced report which will most likely be revised by quite a bit when the preliminary report is made on the 29th and the final report on June 26th.

    An .6% annual growth means that the actual growth in the first quarter would be .1497%. Those numbers are well within the traditional range of adjustments that will be made in the updated reports. It’s not uncommon for the preliminary report to adjust GDP numbers by as much as a percentage point.

    In the last year, it’s been most common for the prelim and final reports to revise the advanced report number downwards. That’s what gives people the support to say we’re in a recession – they predict the final GDP numbers for Q1 will be negative, and that Q2 will be negative too. Voila! A recession! It’s very attractive to be one of the first financial predictors – big bragging rights, etc.

    There’s also the situation that the official US inflation rate is being widely criticized as grossly inaccurate, and the official inflation rate is what adjusts the GDP numbers. If the raw GDP numbers come in and the inflation rate is calculated too low, then there is an incorrectly high measurement of the GDP growth.

    The official US inflation numbers are less than 3% inflation, but most non-govt calculations are coming up with 6+% inflation. If the raw dollars that the economy has grown were adjusted according to the 6% inflation number instead of the 2.4% number the govt is using, then the “growth” would be heavily negative.

    There are a few other reasons people still say we are in a recession even though the official advanced numbers say the economy is growing, but those are the main ones. It’s not quite a post-modern, we-are-in-one-because-we-feel-like-it prediction that we’re currently in a recession.

  • WebMonk

    Just a quick clarification – the .6% growth is an annual rate, and this is also an advanced report which will most likely be revised by quite a bit when the preliminary report is made on the 29th and the final report on June 26th.

    An .6% annual growth means that the actual growth in the first quarter would be .1497%. Those numbers are well within the traditional range of adjustments that will be made in the updated reports. It’s not uncommon for the preliminary report to adjust GDP numbers by as much as a percentage point.

    In the last year, it’s been most common for the prelim and final reports to revise the advanced report number downwards. That’s what gives people the support to say we’re in a recession – they predict the final GDP numbers for Q1 will be negative, and that Q2 will be negative too. Voila! A recession! It’s very attractive to be one of the first financial predictors – big bragging rights, etc.

    There’s also the situation that the official US inflation rate is being widely criticized as grossly inaccurate, and the official inflation rate is what adjusts the GDP numbers. If the raw GDP numbers come in and the inflation rate is calculated too low, then there is an incorrectly high measurement of the GDP growth.

    The official US inflation numbers are less than 3% inflation, but most non-govt calculations are coming up with 6+% inflation. If the raw dollars that the economy has grown were adjusted according to the 6% inflation number instead of the 2.4% number the govt is using, then the “growth” would be heavily negative.

    There are a few other reasons people still say we are in a recession even though the official advanced numbers say the economy is growing, but those are the main ones. It’s not quite a post-modern, we-are-in-one-because-we-feel-like-it prediction that we’re currently in a recession.

  • Don S

    I remember in the summer of ’92, the media loudly proclaimed how terrible was the recession we were in as George Bush 41 struggled against the upstart young governor Clinton and the spoiler Perot. Soon after the election, the “revised” figures came out and it was announced via that same media that we hadn’t been in a recession after all. “Never mind!”, to quote a famous SNL character from bygone years.

    I suspect the same thing is happening here. Not to diminish the economic suffering occurring in certain sectors of the economy, but I think some of the retail weakness is a result of the media bombarding the public with information about what a horrible economy we are in. There is never an economy so bad as the one during an election year when a Republican is president.

  • Don S

    I remember in the summer of ’92, the media loudly proclaimed how terrible was the recession we were in as George Bush 41 struggled against the upstart young governor Clinton and the spoiler Perot. Soon after the election, the “revised” figures came out and it was announced via that same media that we hadn’t been in a recession after all. “Never mind!”, to quote a famous SNL character from bygone years.

    I suspect the same thing is happening here. Not to diminish the economic suffering occurring in certain sectors of the economy, but I think some of the retail weakness is a result of the media bombarding the public with information about what a horrible economy we are in. There is never an economy so bad as the one during an election year when a Republican is president.

  • http://fivepintlutheran.blogspot.com/ David

    I agree the media does not love a republican president. However, it still remains that gasoline is raising in price recently 10-15 cents per gallon. That is not a media concoction nor the result that has on the rest of the items people need to survive.

    I am not looking forward to the next White House or Congress. Whoever it is will be wanting to let the tax cuts expire and dream up new ones to raise. Fun isnt it?

  • http://fivepintlutheran.blogspot.com/ David

    I agree the media does not love a republican president. However, it still remains that gasoline is raising in price recently 10-15 cents per gallon. That is not a media concoction nor the result that has on the rest of the items people need to survive.

    I am not looking forward to the next White House or Congress. Whoever it is will be wanting to let the tax cuts expire and dream up new ones to raise. Fun isnt it?

  • CRB

    There’s a good article here on this topic:
    http://www.victorhanson.com/articles/hanson051208.html

  • CRB

    There’s a good article here on this topic:
    http://www.victorhanson.com/articles/hanson051208.html

  • http://www.hempelstudios.com Sarah in Maryland

    Could it be like a law of physics, for money? “Weath is neither created nor destroyed, it only changes hands.” Even during the Great Depression, there were still people with loads of cash. I am glad that farmers are doing well, though it is a strain to pay more for food. We’re cutting back on shopping at our co-op. We’re now buying things like tuna and kitchen sponges at Giant Eagle when they go on sale. We still get most of our food from local farmers, though. PLUS, we’re putting in a veggie patch.

  • http://www.hempelstudios.com Sarah in Maryland

    Could it be like a law of physics, for money? “Weath is neither created nor destroyed, it only changes hands.” Even during the Great Depression, there were still people with loads of cash. I am glad that farmers are doing well, though it is a strain to pay more for food. We’re cutting back on shopping at our co-op. We’re now buying things like tuna and kitchen sponges at Giant Eagle when they go on sale. We still get most of our food from local farmers, though. PLUS, we’re putting in a veggie patch.

  • Don S

    CRB, that article is right on point. And, David, I agree that the price of gasoline is a major concern, because of its ripple effect on the prices of other goods and, more importantly, because of the negative impact on consumer psychology. I do not agree, however, that the rising price of gasoline is not a media concoction. It largely is, because of the media’s drumbeat of advocacy (as opposed to dispassionate reporting, a seemingly forgotten standard) on environmental issues, which are constricting the supply of oil and forcing the adoption of expensive alternative fuels such as ethanol and expensive boutique gasoline blends which cause refinery dislocations and extra refinery costs. The media’s excessively negative reporting on Middle East issues, because of its hatred of Bush and of the Iraq conflict, also contributes to oil speculation, which bears a responsibility for part of the oil price run-up.

  • Don S

    CRB, that article is right on point. And, David, I agree that the price of gasoline is a major concern, because of its ripple effect on the prices of other goods and, more importantly, because of the negative impact on consumer psychology. I do not agree, however, that the rising price of gasoline is not a media concoction. It largely is, because of the media’s drumbeat of advocacy (as opposed to dispassionate reporting, a seemingly forgotten standard) on environmental issues, which are constricting the supply of oil and forcing the adoption of expensive alternative fuels such as ethanol and expensive boutique gasoline blends which cause refinery dislocations and extra refinery costs. The media’s excessively negative reporting on Middle East issues, because of its hatred of Bush and of the Iraq conflict, also contributes to oil speculation, which bears a responsibility for part of the oil price run-up.

  • http://fivepintlutheran.blogspot.com/ David

    Don

    I understand what you are saying about the environmental issue. However, big oil is using the furor over that to still have a windfall.

    As far as the mideast goes everytime there is a burp over there watch the prices jump within a period of 12 hours or less. Now I have a real problem thinking of anything positive about our involvement in Iraq. My favorite source for news commentary is the CATO Institute. There is little to look at there to rejoice over. The initial involvement was to roust out terrorists and their supporters. Now we are there to protect them against themselves. Sort of like 55 years in S Korea. Will we be in Iraq for 55 more years too? Those actions are helping inflate oil prices and on the other hands we are going further into debt protecting the government in Iraq who are enjoying large amounts of money from the oil.

    I am not much into conspiracy theories but it sure makes one wonder.

  • http://fivepintlutheran.blogspot.com/ David

    Don

    I understand what you are saying about the environmental issue. However, big oil is using the furor over that to still have a windfall.

    As far as the mideast goes everytime there is a burp over there watch the prices jump within a period of 12 hours or less. Now I have a real problem thinking of anything positive about our involvement in Iraq. My favorite source for news commentary is the CATO Institute. There is little to look at there to rejoice over. The initial involvement was to roust out terrorists and their supporters. Now we are there to protect them against themselves. Sort of like 55 years in S Korea. Will we be in Iraq for 55 more years too? Those actions are helping inflate oil prices and on the other hands we are going further into debt protecting the government in Iraq who are enjoying large amounts of money from the oil.

    I am not much into conspiracy theories but it sure makes one wonder.

  • Patrick Kyle

    I don’t trust the Government figures on this. I work in retail and we raised prices on more items in one recent three week period than we have done in any given year. Businesses in nice suburbs of LA are shutting their doors. I talk to people in other retail businesses (I am in the grocery biz) and they report that foot traffic in their stores is significantly down, and hours are being cut from schedules to match the slow sales volumes. Employees from one large bookstore chain tell me their company is on the ropes. It has done massive layoffs and these people are worried the company will close. In my neighborhood ( a nice middle class suburb with homes valued at 400 -500 K) there are abandoned homes with foreclosure notices tacked to the door. One man I know is facing foreclosure on three homes.
    People can say what they want about the stock market, but wild gyrations in the triple digits either plus or minus several times a week show a deep instability in the markets. Anecdotal evidence? Maybe. A lot of money is evaporating into thin air in the mortgage crisis and I don’t think we have begun to pay the piper.
    Will a pittance of money thrown to the voters, and a positive spin on the numbers erase half a trillion or more in bad loans?

  • Patrick Kyle

    I don’t trust the Government figures on this. I work in retail and we raised prices on more items in one recent three week period than we have done in any given year. Businesses in nice suburbs of LA are shutting their doors. I talk to people in other retail businesses (I am in the grocery biz) and they report that foot traffic in their stores is significantly down, and hours are being cut from schedules to match the slow sales volumes. Employees from one large bookstore chain tell me their company is on the ropes. It has done massive layoffs and these people are worried the company will close. In my neighborhood ( a nice middle class suburb with homes valued at 400 -500 K) there are abandoned homes with foreclosure notices tacked to the door. One man I know is facing foreclosure on three homes.
    People can say what they want about the stock market, but wild gyrations in the triple digits either plus or minus several times a week show a deep instability in the markets. Anecdotal evidence? Maybe. A lot of money is evaporating into thin air in the mortgage crisis and I don’t think we have begun to pay the piper.
    Will a pittance of money thrown to the voters, and a positive spin on the numbers erase half a trillion or more in bad loans?

  • Don S

    David, who is “big oil”? If you mean oil producers such as OPEC, Chavez, et al., then I agree with you. They are exacerbating the problem by taking actions to constrain supply and keep prices firm at $100+ per bbl. Chavez is doing his part with his blustering and threats against Colombia. If, on the other hand, you are accusing oil companies of somehow conspiring to cause this market condition, prove it. My first question would be, why are they only able to do this sometimes if they are so powerful? Why was oil $30 per bbl a few years ago? Where did these big, bad oil companies get all this market power, just in the past couple of years? Why, after all of the endless Congressional hearings and investigations, is no wrongdoing ever found?

    I like the CATO Institute, but they are just plain wrong on this one. First of all, we would be in Afghanistan in any event. Virtually everyone agrees we should be there. As for Iraq, 85% of us thought going into Iraq was the right thing in 2003. Regardless of whether it was or not, what choice do we have now? We have made tremendous progress there in the past year and a half, and abruptly getting out now would just throw away everything we have sacrificed to date.

    As for getting out of Korea and Europe, I’m all for it. Funny how all of the anti-war folks don’t really push for that, though. Why do we have 100,000 + troops in Europe anyway?

    Groundless conspiracy theories that take hold in the hearts and minds of otherwise reasonable people scare me more than anything else about the future of America. I think this loss of basic trust in American principles and leadership is a function of our rejection of absolute standards of truth and morality. I refuse to participate in this process by entertaining such notions of conspiracy, especially those supported by not a shred of evidence.

  • Don S

    David, who is “big oil”? If you mean oil producers such as OPEC, Chavez, et al., then I agree with you. They are exacerbating the problem by taking actions to constrain supply and keep prices firm at $100+ per bbl. Chavez is doing his part with his blustering and threats against Colombia. If, on the other hand, you are accusing oil companies of somehow conspiring to cause this market condition, prove it. My first question would be, why are they only able to do this sometimes if they are so powerful? Why was oil $30 per bbl a few years ago? Where did these big, bad oil companies get all this market power, just in the past couple of years? Why, after all of the endless Congressional hearings and investigations, is no wrongdoing ever found?

    I like the CATO Institute, but they are just plain wrong on this one. First of all, we would be in Afghanistan in any event. Virtually everyone agrees we should be there. As for Iraq, 85% of us thought going into Iraq was the right thing in 2003. Regardless of whether it was or not, what choice do we have now? We have made tremendous progress there in the past year and a half, and abruptly getting out now would just throw away everything we have sacrificed to date.

    As for getting out of Korea and Europe, I’m all for it. Funny how all of the anti-war folks don’t really push for that, though. Why do we have 100,000 + troops in Europe anyway?

    Groundless conspiracy theories that take hold in the hearts and minds of otherwise reasonable people scare me more than anything else about the future of America. I think this loss of basic trust in American principles and leadership is a function of our rejection of absolute standards of truth and morality. I refuse to participate in this process by entertaining such notions of conspiracy, especially those supported by not a shred of evidence.

  • Don S

    Patrick:

    Patrick:

    The real estate problem is very real, but also a normal correction. Real estate, particularly in So. Cal., tripled in value between 1998 and 2006. Speculation and easy credit drove the market to unsustainable heights. There was obviously going to have to be a serious correction and now is the time. Unfortunately, people blindly entered the market at its peak, with zero down payment adjustable loans and no means to pay them back, absent continued increase in real estate value. That is why you see so many foreclosures, but this is not a bad thing, except for those who stupidly bought at market peak. But most of those folks who are now walking away lost very little equity (except on paper), because they made very small or no down payment.

    As for brick and mortar retail, it has been declining for years. Internet sales have been driving that decline. In particular, grocery chains have been losing market share to the warehouse chains such as Costco for years. I remember the grocery strike in So. Cal. a few years ago where the chains were whining even then about the concessions they needed from labor because of their declining market share. So this is nothing new, and is not primarily due to a present recession. I’m sure current market conditions are not helping, but it’s not like this is some sudden apocalypse either.

    The stock market is telling the tale. It has stabilized, and is even rising to some extent, because company earnings reports are a lot better than folks were led to believe by the “chicken little” media. I don’t trust the government figures either, but company earnings reports are a definite bellwether.

    Bookstore chains — Amazon.com. Enough said.

    By the way, “One man I know is facing foreclosure on three homes” should ring bells in your head. Three homes? Can you say “house flipper/speculator”? He deserves his fate, as it is these “easy money” guys who drove the real estate market into this condition.

  • Don S

    Patrick:

    Patrick:

    The real estate problem is very real, but also a normal correction. Real estate, particularly in So. Cal., tripled in value between 1998 and 2006. Speculation and easy credit drove the market to unsustainable heights. There was obviously going to have to be a serious correction and now is the time. Unfortunately, people blindly entered the market at its peak, with zero down payment adjustable loans and no means to pay them back, absent continued increase in real estate value. That is why you see so many foreclosures, but this is not a bad thing, except for those who stupidly bought at market peak. But most of those folks who are now walking away lost very little equity (except on paper), because they made very small or no down payment.

    As for brick and mortar retail, it has been declining for years. Internet sales have been driving that decline. In particular, grocery chains have been losing market share to the warehouse chains such as Costco for years. I remember the grocery strike in So. Cal. a few years ago where the chains were whining even then about the concessions they needed from labor because of their declining market share. So this is nothing new, and is not primarily due to a present recession. I’m sure current market conditions are not helping, but it’s not like this is some sudden apocalypse either.

    The stock market is telling the tale. It has stabilized, and is even rising to some extent, because company earnings reports are a lot better than folks were led to believe by the “chicken little” media. I don’t trust the government figures either, but company earnings reports are a definite bellwether.

    Bookstore chains — Amazon.com. Enough said.

    By the way, “One man I know is facing foreclosure on three homes” should ring bells in your head. Three homes? Can you say “house flipper/speculator”? He deserves his fate, as it is these “easy money” guys who drove the real estate market into this condition.

  • Don S

    Who Stole the American Spirit?
    By ZACHARY KARABELL
    May 14, 2008; Page A21

    According to the most recent polls, more than 75% of the American public believes the economy is in bad shape. All three remaining candidates for president are treating the economy as the biggest electoral issue, and all agree the situation is dire.

    The normally sanguine Alan Greenspan recently observed that the current economic mess is “the most wrenching” since World War II; Fortune magazine’s Allan Sloan, who’s been covering the business of business for decades says, “I’m more nervous about the world financial system than I’ve ever been in 40 years.

    There is no denying that the current financial morass is deep and painful. But taking the long view, there is something both startling and disturbing about the gloom that has settled over Wall Street and the country in general. In fact, looking back over the past century, it would be a stretch to rank the current problems as especially notable or dramatic. Something else is going on – namely a cultural rut of pessimism that is draining our collective energy, blinding us to possibilities, and eroding our position in the world.

    Per my earlier posts, I think the above op-ed says it very well. Please read the rest of the article for startling statistics giving historical perspective showing how much we are overreacting to the present economic circumstances. Satan has conditioned us to be permanently dissatisfied with our circumstances, no matter how historically incredible they really are. May we, as did Paul, learn to be content in all circumstances (Philippians 4: 11-12). May we truly appreciate the wonderful gift God has given those of us who are fortunate enough to live in modern America. May we help our fellow citizens see that their dissatisfaction is rooted in spiritual emptiness and not an absence of material things.

  • Don S

    Who Stole the American Spirit?
    By ZACHARY KARABELL
    May 14, 2008; Page A21

    According to the most recent polls, more than 75% of the American public believes the economy is in bad shape. All three remaining candidates for president are treating the economy as the biggest electoral issue, and all agree the situation is dire.

    The normally sanguine Alan Greenspan recently observed that the current economic mess is “the most wrenching” since World War II; Fortune magazine’s Allan Sloan, who’s been covering the business of business for decades says, “I’m more nervous about the world financial system than I’ve ever been in 40 years.

    There is no denying that the current financial morass is deep and painful. But taking the long view, there is something both startling and disturbing about the gloom that has settled over Wall Street and the country in general. In fact, looking back over the past century, it would be a stretch to rank the current problems as especially notable or dramatic. Something else is going on – namely a cultural rut of pessimism that is draining our collective energy, blinding us to possibilities, and eroding our position in the world.

    Per my earlier posts, I think the above op-ed says it very well. Please read the rest of the article for startling statistics giving historical perspective showing how much we are overreacting to the present economic circumstances. Satan has conditioned us to be permanently dissatisfied with our circumstances, no matter how historically incredible they really are. May we, as did Paul, learn to be content in all circumstances (Philippians 4: 11-12). May we truly appreciate the wonderful gift God has given those of us who are fortunate enough to live in modern America. May we help our fellow citizens see that their dissatisfaction is rooted in spiritual emptiness and not an absence of material things.

  • anon

    Still LOL over TK’s “It’s the new post-modern definition of recession, no? We’ll have a recession if we FEEL like having one. It suits our purposes. ” HA!

    Regardless if it’s a technical recession or not, I think an adjustment is needed in American thinking. Even though the gov’t. thinks the answer is to continue to encourage us to spend, I hope this small shake up is causing some to save, rethink mortgages outside of budgets restraints, and perhaps even trade in the ole’ SUV. Our worth as a nation need not be based on how much money we spend but on how well we spend it.

    Obviously, I’m no expert – just a housewife with wonky ideas. I don’t know of anyone else who is happy with a slow down (not that I am in any way happy for those who are truly suffering to make ends meet).

  • anon

    Still LOL over TK’s “It’s the new post-modern definition of recession, no? We’ll have a recession if we FEEL like having one. It suits our purposes. ” HA!

    Regardless if it’s a technical recession or not, I think an adjustment is needed in American thinking. Even though the gov’t. thinks the answer is to continue to encourage us to spend, I hope this small shake up is causing some to save, rethink mortgages outside of budgets restraints, and perhaps even trade in the ole’ SUV. Our worth as a nation need not be based on how much money we spend but on how well we spend it.

    Obviously, I’m no expert – just a housewife with wonky ideas. I don’t know of anyone else who is happy with a slow down (not that I am in any way happy for those who are truly suffering to make ends meet).


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