(the Federal Reserve boss) speaks of how the real GDP has not grown much in 2008 and there is a possibility that it may contract a little. Not only is this a little striking, but it raises the attention of the public. I just wanted to see how our economics class would react to this article. It's interesting because, in class, we talked about how GDP may not even really be a measure of a nation's economic process, but more of a nation's economic activity. Now, those are two completely different things and it's interesting to see how some people react to this article. My reaction, personally, is not to be too concerned, but to still acknowledge the aspect of a possible recession. How do my fellow classmates feel?
Wednesday, April 2, 2008
Speaking of a Recession:
Here is an article to take some time to look into. It talks about the possible recession in the US. Ben Bernanke: 
(the Federal Reserve boss) speaks of how the real GDP has not grown much in 2008 and there is a possibility that it may contract a little. Not only is this a little striking, but it raises the attention of the public. I just wanted to see how our economics class would react to this article. It's interesting because, in class, we talked about how GDP may not even really be a measure of a nation's economic process, but more of a nation's economic activity. Now, those are two completely different things and it's interesting to see how some people react to this article. My reaction, personally, is not to be too concerned, but to still acknowledge the aspect of a possible recession. How do my fellow classmates feel?
(the Federal Reserve boss) speaks of how the real GDP has not grown much in 2008 and there is a possibility that it may contract a little. Not only is this a little striking, but it raises the attention of the public. I just wanted to see how our economics class would react to this article. It's interesting because, in class, we talked about how GDP may not even really be a measure of a nation's economic process, but more of a nation's economic activity. Now, those are two completely different things and it's interesting to see how some people react to this article. My reaction, personally, is not to be too concerned, but to still acknowledge the aspect of a possible recession. How do my fellow classmates feel?
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4 comments:
I think the economy is headed for a recession or contraction of some sort, especially because inflation has been increasing and there have been many home/mortgage and credit issues. There's been a lot of talk about a recession which makes people feel less secure about the economy. This insecurity may lead to less spending (and consequently more saving), which, as we discussed in class, can lead to a self-fulfilling prophecy. I hope whoever becomes the next president can prevent a recession and reestablish peoples' faith in the economy.
I don't know any details about the economy or anything like that, but I thought that it was pretty obvious that we're heading into a recession. I thought that we've been in a recession. I've been hearing about the home mortgage crisis and how people are getting their homes taken away. Also, I've heard about how people are having hard times getting loans. It just feels like the economy is in a recession. Not to mention the stock market. That has been down for months, and only recently has it bounced up to unpredicable numbers. But then it shot right back down. Also, I think a lot of people don't have faith in George Bush and his economic plans, so people aren't spending. To answer the question I say yes, we're in a recession.
I think we are definately heading towards a recession because with the real estate market facing serious difficulties and banks possibly going bankrupt, the economy is clearly bad right now. I think that all of the hype in the media is going to make people decrease their spending which,i think, will also allow this process to continue to spiral downwards. I also read that the economy will probably enter a recession and there will be inflation simultaneously.
I herd that we were already in one according to some sources. So I would take it into consideration, but then again our generation has so many other constant threats, like unsteady leadership roles in other countries, that I would say don't worry about it until Mr. Silton tells us to.
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