Three Cheers for 'Reganomics'

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don't think so

unemployment is rising

consumers are spending less because they have less disposable income due to necessitiy costs rising sharply

less consumption, not because of exports

LP of TX @ Apr 29, 2008 20:18:15 PM

The reason it "feels" like a recession is because exports are up. A recession is a contraction of GDP which means we are producing fewer goods and services which in turn means we are consuming less. In the current environment, unemployment is staying low and GDP growth is positive because we are going to work and producing more goods for export. But because we are exporting more our consumption is less. Less consumption gives the "feel" of a recession.

markg of CT @ Apr 23, 2008 12:11:24 PM

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Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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