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Ok. Recession is negative GDP growth. Since 2010 we have had positive GDP growth. Hence, the recession ended. What contributed to positive GDP growth, increased government spending and the targeted tax cuts that stimulated economic activity and made up half of the stimulus package. At least, that is the consensus among economists. Among your mouth breathing circle of friends, I am sure they claim that there has been no recovery.
Wrong, first quarter GDP has been revised to -.7. That's bad.
What is wrong? A recession is negative GDP growth over at least three quarters. A recovery is positive GDP growth. We have had positive GDP growth each year. There have been two quarters when GDP growth slipped in the negative, both in part related to the reduced economic activity related to the huge snowfalls on the east coast.
According to that bastion of liberal thought, the Wall Street Journal:
Snowstorms are bad for the economy, at least in the short term. Then they might offer an economic lift, as we learned over the last year.
A
major nor’easter is expected to dump up to three feet of snow in much of the Northeastern U.S. through Tuesday evening, according to the
National Oceanic and Atmospheric Administration. Major metropolitan areas including New York City and Boston
may experience blizzard conditions.
“We’re talking about a highly populated area where a lot of economic activity takes place,” said
Ben Herzon, senior economist at
Macroeconomic Advisers. “If activity is slowed for a few days, a week, it could have an effect on GDP.”
The forecasting group estimated that unusually harsh weather last winter knocked 0.1 percentage point off of fourth-quarter gross domestic product in 2013 and 1.4 percentage point off of the first quarter of 2014.
That January to March span saw GDP, the broadest measure of economic output, shrink by 2.1%, marking the weakest performance since the recession. Payroll growth also was particularly poor, with December 2013 through March 2014 averaging just over 163,000 a month, compared with 246,000 for the full year.
That span also correlated with an historically awful winter, one that brought the term “polar vortex” into common usage. Record cold and heavy snow snarled travel, closed schools and government offices and many businesses, and
kept many Americans from getting to work.