Yes, that’s right… It took the US government an entire year to surmise that the country has indeed been in recession since last December! I guess, individuals can sense the slump and slowing pulse, way ahead, but officially, a doctor must wait for all the test results to come through, before declaring that the patient is sick! The doc must be very sure, what s/he proclaims; so what if precautionary measures could have well been taken in the interim, following tell-tale symptoms of the ailment, but the doctor must be cautious!
That’s the sorry state of affairs this country has been, because government officials will not utter the ‘R’ word… the country is in a state of economic “Rot“! What?
Recession = decline in economic activity, lasting more than a few months
Recession = end of activity peak, and where the downturn begins
Recession = decline in manufacturing activity
Recession = slowdown in retail sales
Recession = drop in industrial production
Recession = drop in personal income
Recession = increase in number of unemployment claims
Recession = increase in number of layoffs
Recession = decrease in wages, a function of payroll
Recession = drop in construction spending
Recession = decline in consumer spending
Recession = collapse of stock markets
Recession = decline in energy consumption
Recession = contraction of economy, spread across the board across sectors
Recession = period of diminishing activity
Recession = not until the powers that be, declare it so, officially!
We ought to be thankful that this official declaration has been announced well ahead – i.e. six months prior to the total 18 months they could have taken to let us know, since the recession actually started 12 months back!
Oh, and did you want an indication as to how long this period will last? Well, the committee who gives us this big news, is unable to forecast how long it will be, before the recession ends. So much for economics, econometrics, economists, financial wizardry, the BCDC of the NBER. Speakin’ of the rough economy, go figure… the peak and the trough, or the abc of the ‘R’!