Wednesday, July 6, 2022

How long does a recession last?

Depends who you ask.  Ask an economist and he will say the recession is over when GNP and/or the stock market stops going down.  This usually happens 18 months after the recession kicked off. 

   Ask a real person, and they will say the recession does not end until wages, prices, and jobs have recovered to where they were when the recession stuck.

   For instance the last recession, Great Depression 2.0, kicked off in the winter of 2008-2009 after a bunch of really stupid loansby big banks went bad.  Economists said it was over by 2010.   In many ways it is still with us, 13 years later.  Lesson: don’t trust what economists say, they lie a lot.

   It is business men that end recessions.  They work hard and do nearly anything to get their sales back up to where with used to be/ ought to be,

No comments: