US Treasury Secretary Janet Yellen speaks on the state of the US economy during a press conference at the Department of Treasury in Washingt...

Recession or Not?



US Treasury Secretary Janet Yellen speaks on the state of the US economy during a press conference at the Department of Treasury in Washington, DC, on July 28, 2022. (Saul Loeb/AFP via Getty Images)


It seems as if we have conflicting reports inside the minds of America’s economic and business elite. While recessions are generally easy to define, this time the powers that be are having trouble.

Are we in a recession or not? Officially, the National Bureau of Economic Research (NBER) committee, which decides and records recessions in the United States, defines a recession as “a significant decline in economic activity that is spread across the economy and that lasts more than a few months.”

Yes, it is true, we have had two consecutive declines in GDP. The Federal Reserve Bank of Dallas reported, on Aug. 2, that the nation’s gross domestic product (GDP) “fell 1.6 percent on an annualized basis in the first quarter of 2022 and was followed by a 0.9 percent drop in the second quarter.”

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