Tuesday, December 2, 2008

US has been in recession since Dec. '07? Not Really

Monday, newswires reported that the U.S. economy has been in a recession since December 2007, according to a National Bureau of Economic Research study.
The NBER -- a private, nonprofit research organization -- said its group of [liberal] academic economists who determine business cycles met and decided that the U.S. recession began last December.
However, the erroneous report has not been questioned by mainstream journalists who always seem incapable of doing their jobs. Yes, it is a reporter's job not to accept premises on face value alone and to question statements made in support of those premises.

Here is the fact (look it up) and here is the important question:
  • Fact: The textbook definition of a recession is a situation in which a country's GDP, or gross domestic product, shrinks for at least 2 consecutive quarters. The U.S. economy has yet to experience this situation (OK dropouts, I've looked it up for you. Here's a chart.). While you may be in disbelief of this fact, your naivete is probably due more to journalistic malpractice than to your lack of current events awareness.

  • Question: If we were to assume this report to be correct (which it is not) then you really have to ask why these smart people have not acted sooner to head off the economic crisis.

If this economics report makes claims about the economy that are false by economists' definition, and the mainstream media is now using the report as its foundation to explain the so-called economic crisis, we can make an educated deduction about what just is going on here.

It is a fact that market has dropped to historic lows leading up to and following the national election of Obama (look it up). We can speculate that the economy will remain unstable until investors know what Obama has in store for them in the way of taxes and regulations. It seems to follow, then, that this bogus economics report was simply created to provide cover for the economic fallout caused by Obama.

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