What Is A Recession?

United States
January 28, 2008 6:12pm CST
I have been hearing a lot about a recession lately. I have a pretty good idea what a recession is, or I thought I did. I was just thinking when I realized that I do not know exactly what the defination of recession is. Now let me explain. In my mind, we are already in a recession. Our county is already in so much debt that our we may never get out. People are losing their jobs. This leads to them loosing their homes as well. Gasoline is so expensive that it is cutting into everyones budget. The "middle class" of yesterday is now in the upper low class. When families do not have the money to pay their normal bills, then a depression is upon us. That is what I thought a recession was. In reality, the economists cannot agree on the definition of a recession. It seems that if you ask 50 economists what the definition of a recession is, you would get 50 different answers. According to Mike Moffatt, there is an old joke among economists that goes like this: A recession is when your neighbor loses his job A depression is when you lose your job. So how do you explain what a recession is? How do you explain what a depression is?
2 people like this
2 responses
@winterose (39931)
• Canada
29 Jan 08
yes it is true nobody can agree on what a recession is but it has to do with a sluggish economy, an absolute standstill is no work everyone out of jobs and on welfare. Here in Canada we are getting the news that americans are heading for a possible recession which means you are probably in the pre recession phase, where certain areas of the economy is still working fairly well and other sectors are not. I know housing is hit hard, and that is always a bit pre recession sign.
2 people like this
@dreamy1 (3818)
• United States
29 Jan 08
A recession is an economic slowdown. People may very well lose jobs. They don't buy goods and services and spending decreases because they don't have the money. If they aren't spending business are affected because they don't have many customers. Spending makes the economy go around. If people aren't buying things and spending money the economy slows down.
2 people like this