Tuesday, October 11, 2011

Hallelujah! The Recession is Over! NOT!

[1933 bread line]

According to an article in the New York Times, median household income in the United States has fallen an additional 6.7% since the end of the recession in June 2009. This is in addition to the 3.2% it fell during the recession which lasted from December 2007 to June 2009. Unemployment, which rose to 9.5% during the recession, has remained above 9% since the recession ended.

Those who lost their jobs were out of work an average of 16.6 weeks when the recession began and an average of 24.1 weeks when it ended. Now that there is no recession, those losing their jobs are now out of work an average of 40.5 weeks, the longest in 60 years.

For those still employed, wages adjusted for inflation have continued to fall since the recession ended. The number of people neither working nor receiving unemployment benefits has continued to rise.

Which means that the government's definition of a recession, "a period in which gross domestic product falls for two or more consecutive quarters" is worse than wrong - it is meaningless.


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