If the economy grows for 10 quarters, and the public fails to notice, does it really grow?
Some good news came by the way of a Gallup poll yesterday. Unfortunately, the same poll also provided disappointing news about Americans’ understanding of the economy. According to the poll, over 40% of Americans now think the economy is growing.
Recessions refer to periods of reduced economic activity including the contraction phase of a business cycle, with two or more consecutive quarters of negative GDP growth. The U.S. economy has grown for 10 consecutive quarters, and the U.S. recession officially ended in either June or July of 2009. Not only has the majority of the public failed to notice, but worse, many feel we’re in a depression. What? How is it that such a broad swath of the American public hasn’t gotten the news after nearly three years? Apparently, the Pony Express could deliver the news faster than new media has.