Inside Politics Daily

It's Not a Recession

Posted:
04/30/08
Filed Under:Economy

President George W. Bush.The U.S. economy expanded by 0.6% in the first quarter of the year. The pace is critically low, but faster than anticipated and is, after all, an expansion. Hence, we have not entered a recession.


Economists, naturally, note reasons for the weakened economy as including the deteriorating housing market and home foreclosures, an uptick in unemployment, lax consumer purchases, soaring energy and food prices and a growing credit crunch. Of course, analysts are hesitant to answer the "chicken-or-the-egg" conundrum, and do not clearly distinguish between causes and effects.


The Bush administration is hopeful that the $168 billion stimulus package will reinvigorate the economy. Congressional Democrats, as always, are calling for increased spending on social programs (such as unemployment benefits). As the Democrats will not likely find any traction, the next quarter will determine if the president's gamble is successful - the first rebate checks will reach mailboxes on Monday.

Justin Paulette

Justin Paulette is an attorney practicing international law in bella Italia. He hails from the great Buckeye State, "The Heart of it All," the only state with a bridge which you can cross and still be on the same side of the river, home of the hot dog, pop top soda can and the largest basket in the world! Though he's spent the past decade jet-setting across the Atlantic with one foot in London and the other on Capitol Hill, he still fancies himself a Mid-western, God-fearing, role-playing geek at heart.

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