Work + Money

Wednesday, August 27, 2008

The White House says we're not in a recession. What do you say?

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Getty Images

The White House says we're not in a recession. Tell that to the average American who is spending significantly more on gas and groceries this year than last, or the parent who has been laid off from her job just as the kids are closing in on college. More than half of all Americans say they are spending less on groceries to pay for gas, and are spending less on discretionary items, too, like eating out and going to the movies.

So why can White House spokespeople say we're not in a recession while well-known economists argue over whether we are or are not? The definition of a recession is not clear cut, in part because no two recessions have the same economic data footprint. As this Time magazine article notes, a recession means different things to different segments of the economy. A drop in sales to retailers (but how much of a drop?) To labor groups, an increase in unemployment (but how much of an increase?)

Harvard's Economist Sumner Slichter tells Time: A recession is "no more than a momentary drop in employment and production"—and the U.S. "is in one right now." But Staff Chief Grover Ensley of the Joint Committee on the Economic Report says the economy is in the midst of a downward adjustment, but not necessarily a recessionary adjustment. Got that?

So, this week's Shine Money Poll question is straightforward but not necessarily simple: Do you think our economy is in a recession?
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From the Community…

Comments 1-10 of 47
  • Madelyn's Avatar
    Posted by Madelyn Thu May 29, 2008 12:32pm PDT

    i feel we're in a recession. that's my opinion.

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  • psychicquill's Avatar
    Posted by psychicquill Thu May 29, 2008 1:39pm PDT

    No, we are not in a recession IMO. The point is that people are still spending the money; no matter what it's spent on, it's getting spent.

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  • xo's Avatar
    Posted by xo Thu May 29, 2008 5:38pm PDT

    How can we be in a recession when companies are *still* making money? I don't mean the oil companies, but the big guys like Walmart, Costco and Kohls.

    Give me a break, get a grip. Spend your stimulus checks on something nice for yourself or your family. That is why its there.

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  • Annette's Avatar
    Posted by Annette Thu May 29, 2008 5:49pm PDT

    WELL LESS FOOD, LESS DRIVING MEANS MORE STAYING HOME WITH FAMILY, A GOOD THING, LESS GAS MEANS MORE WALKING, GOOD FOR THE BODY, AND I SEE SOME GOOD COMMING OUT OF THIS WHOLE THING..I WORK AT AMAZON.COM AND WE HAVE MORE THAN 100K ORDERS COMMING IN EVERY DAY, PEOPLE STILL SPENDING. I DONT SEE A RECESSION.. SO TIMES ARE TOUGH, GEEE GET OVER IT, LIKE OUR RELATIVES COULDNT HAVE SURVIVED THE 20'S IF THEY SET AROUND AND COMPLAINED, NO THEY GOT UP AND DID WHAT THEY COULD.. WE SHOULD LEARN FROM ANCESTORS....MY STIMULIS CHECK WILL GO TO PAY OFF CREDIT CARD,, DONT LIKE DEBT..

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  • ebhall@ameritech.net's Avatar
    Posted by ebhall@ameritech.net Thu May 29, 2008 6:11pm PDT

    This old lady(age 79) says. We certainly are in a recession. I don't care what the White House says. Those of us on fixed incomes have less and less to spend. I didn't buy coffee today because they wanted $9.99 for a 34 ounce plastic container. What happened to the metal cans. On one hand we are told about how much oil goes into plastic and how much it costs. Then they dump the metal. Sounds like someone is trying to have it both ways.

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  • elsiesanchez1's Avatar
    Posted by elsiesanchez1 Thu May 29, 2008 6:43pm PDT

    I'm not sure about a recession. All I know is that prices do go up and we seldom get paid more, but that's always been the story. I think it's just happening at a faster rate and our over-consumption of nearly everything is finally catching up to us. I just try to stay positive and think that we're still more fortunate than a lot of nations in terms of our general quality of life.

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  • chris q's Avatar
    Posted by chris q Thu May 29, 2008 8:04pm PDT

    No, not your typical recession. I would not even attempt to use the phrases: "Companies still making money etc"... I look at things outside our capitalistic monetary box. I've been around long enough to have seen a few bad times but this is really the worst of them. "Yes, there are those that are doing very well and a few doing ok but the thing the most noticeable is the growing poor in this country. "We're looking more and more like Mexico if you ask me".

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  • graylady's Avatar
    Posted by graylady Thu May 29, 2008 11:35pm PDT

    The whitehouse still has everything they could wish for .Let them take a walk in my shoes to know what real below poverty feels like.When they can't afford toilet paper and have to go to junk mail for the bathroom paper they will know what it feels like.

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  • debtfreegoal's Avatar
    Posted by debtfreegoal Fri May 30, 2008 6:37am PDT

    I'll stick with the old saying "it's a recession when it's happening to your neighbor and full blown depression when it's happening to you". I'm personally in a depression! lol....

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  • Melis's Avatar
    Posted by Melis Fri May 30, 2008 7:00am PDT

    I don't think we are fully in a recession. But I know we are teatering on it!

    I was out of work for over a year (with an MBA) very depressing. But I finally landed a job. (After stalking, begging, and being very persisitant with the company to give me a chance!!) Now that is depressing.

    I agree we are all still spending money. I went to the mall and people are still walking around spending money.

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"Perspective is a tough thing to keep, especially when things get tough, but I try. I try to remember what it was like before I became a mom, when I was just a tough-cookie career woman. Coming home from difficult days at work I’d try to drown out the stress with a workout, some silly TV, going for a walk and grabbing some takeout with my husband. It helped, but nothing helps like a smile and a hug from my daughter, and knowing (however difficult it might be to remind myself of this after a punching-bag day) that everything is just fine as long as I can come home and be her mom."