Rooted in Reason: Nurturing the Seeds of Liberty

Recession Pain Still Real, Despite End, Obama Says by grassroothawaii
September 28, 2010, 10:28 am
Filed under: Uncategorized

The following entry is in response to the following article:

By George Berish

Don’t feel confused just because the effect of the U.S. economy on your life seems like a “recession” when the “experts” say the “recession” is over. It’s only confusing because designers of the Gross National Product measurement never contemplated any Congress would be foolish enough to dump Trillions of debt-financed spending into the economy! Here’s the problem.

The Gross National Product measures the total amount spent by consumers (which is logically identical to the total amount received by producers). That means an increasing GNP normally meant more consumers were being employed in better paying jobs that gave them more money to spend to drive the GNP up. But today it only means the federal government dumped Trillions of borrowed money into the hands of spenders who didn’t need to be productively employed to earn it before spending it.

“Experts” ignore the distortion, so the GNP is going up, and that always means the “recession” is over. People with common sense understand today’s GNP increase means the opposite. The recession is not over, because the increase is not coming from our economy delivering more people better jobs to earn more money to drive it up. Simple as that.


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