I see more and more postings on saving money, finding part time job, and other relative questions about money. So Im asking you? Do you feel the crunch? Do you think we are in a recession? Or is your pocket book not feeling the squeeze of the higher prices of everything??
We're definitely not in a recession....for it to be a recession the country has to have negative growth for 2 quarters and we haven't had that. With the increase in gas and sudden increase in food prices, I think it's made people stop and reconsider ways to cut costs. (Which I'm always looking for no matter what the economic outlook is.)
A recession is technically defined as a decline in the Gross Domestic Product (GDP) for two or more quarters (6 months), so the answer is NO we are not in a recession. However, we have seen a decline in the rate at which GDP was growing and it is basically at a standstill currently. We generally see this just prior to a recession. The fear is that growth will continue to slow until we are in a recession (inflation also plays in here which is why there is so much concern about the balance between the Fed cutting rates or keeping them stable... lower rates = higher inflation = you get less for your dollar BUT when you lower rates it generally stimulates the economy because the cost to borrow money is cheaper therefore people borrow more and spend more).
I personally feel that there is some slow down in economic growth contributed primarily to the sub prime market and oil prices, but there is also some self-fulfilling proficiency involved. The more the media throws around the Recession word the more cautious people are, so they save more and spend less which contributes to further slow down in economic growth. I have found myself doing it even though my family has not seen any real impact by the slow down.
I really do feel that some families are feeling the squeeze but I think some of it is a result of the general US population reacting to specific problems in specific sectors of the economy that in real terms do not impact them at all (an example would be my family cutting back when we don't really have a reason to).
I hope this all makes sense. I find that economic issues and discussions can sometimes be hard to follow so if I was not clear about any of my opinions/statements just let me know and I will try to explain them again.
This is a great topic!
-C.
I don't think we're in a recession either. Yes, prices for oil and some commodities are up and I've noticed it at my local grocery store, which has caused me to look at other options, like buying in bulk or switching to products with a better shelf life. I also know that some food price increases have more to do with government subsidies than any thing else. More and more farmers are dropping other crops to grow corn so that they can make more money from ethanol production than supplying food for human consumption. I'm a firm believer in the free-market system and now we're all feeling the negative effects of government subsidies. I also think the media is to blame for a lot of the country's concerns. They report all this "recession" and "slowing economy" stuff because it's sensational news and gets them more viewers. I've reached the point where I look at the news the way I would look at the boy who cries "wolf!" - I take what each says with a grain of salt because it's either completely untrue or only half-truths that I don't believe it any more.
That's my humble opinion. :)
I'd love to know what technically is going on out there. We haven't moved to Frisco -YET because we're still trying to sell our home here in Kansas.
The gas prices are ridiculous along with everything that seems to be rising in prices.
Definitely seems like some scary stuff. I'm sorry about the business being slow. Seems like every business is having some type of problems.
