Monday, August 30, 2010

The self fulfilling prophecy of double dip recession

Nowadays there are increasing materials in print and electronic media on fear that the economy will have a double dip recession meaning a recession followed by a short recovery and back to recession in quick succession. Although data being released suggests it that way but to see it as double dip is misleading since there was no recovery to begin with. If you see the government unemployment numbers they never budged that much during the recession, so to say that we may experience double dip recession is not correct. It is that the recession never ended since millions of people are still unemployed and the GDP (Gross domestic product) is still in recessionary territory.

If you surf the web and the newspapers you would see numerous stories of people who have been unemployed for a long time, desperate for any job to come by. This has never been happened before and it is not just the blue collar workers, but also lawyers and financial people, the one we think that they were recession proof. So the economists instead of living in world of utopia should come out clearly that the recession is still out there and there is no such thing as double dip recession.

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