June 2008 was the worst month on Wall Street since the Great Depression. Gas prices went up on my street again today.  The past few weeks, even in my city where the economy seems less impacted than the national economy, the stores have seemed less full and people seem to be buying less.  I’ve been predicting a Fall turnaround in the economy, but I’m beginning to wonder if we have bottomed out so we can start going up again?   

Economists today can’t agree about what a recession actually even is these days.  When I was a business student a recession was two consecutive quarters of decline in (GDP) gross domestic product.  Any other answer would have been wrong on a test.  I honestly think today that for some economists recession is more decided by perception rather than reality.   

So, here’s my theory.  We have scared ourselves into much of the negative economic news we are experiencing.  Of course the housing market needs correction.  Obviously we are having to adjust to new levels of oil supply and demand pricing.  Some of these corrections were natural reactions to the fluent economy we have enjoyed for a couple of decades.  

I think we have allowed the continued negative outlook on the economy by the national media to impact the way we live our lives even if our lives have been barely impacted by the change in the national economy.  I believe that if we could get a little positive information injected into the economy, such as the number of people who still have jobs, people will begin to have a better perception about their own personal economy and therefore the economists who are crying recession could start shouting economic growth. 

I know it sounds elementary, but I’m not so sure that’s not how we are determining economic strength these days, so why not give it a try? 

Related posts:

1. The Economy Is Full Of Good News
2. Economic Blues By Association (Hope Needed)
3. When Will the Economy Improve?
4. Good News About the Economy
5. Has The Recession Already Ended?