Missing the meaning of “recession”
A “recession” is a widespread downturn in economic activity. Almost by definition, a recession is a temporary state of affairs, to be replaced by more normal economic expansion. Therefore it’s not helpful to call every piece of bad economic news — such as the high cost of living — a “recession.”
It’s not even clear that the U.S. is in a recession, as of this posting. The economy was actually growing, by 3.3 percent, in the second quarter of 2008. Yet news reports seem to have come up with a new and expansive definition of a recession.
Look at this article, in which Hilda Sanchez concludes we’re in a recession and says, “We are cutting corners in our spending. For our groceries, we are buying a lot of generic and we are eating out less.” If the definition of a “recession” is “a time when a reporter can find families cutting back on spending,” then we will forever be in a recession.
“Absolutely, we’re in a recession,” said Hilda Sanchez, 44, of Waterford, Calif.
Worse yet, those who think a recession cure will save everyone from having to watch their spending are just wrong. So let’s use the word “recession” more precisely. You can’t fight an enemy you don’t know — and if your enemy is, say, high energy prices or lack of job skills, the end of a recession won’t make those things go away.


