It could take years to get out of this mess


Do you think Santa is out of work too?

Technically, we are no longer in a recession.

The Dow has exceeded 10,000 points. Stocks have surged about 50 percent since their March lows.  Wall Street is making money again. And according to the AP, forecasters say the government’s GDP will show growth at an annual rate of about 3 percent, validating that the recession ended in June or July.

But what about the 15 million of us still hoping for food stamps?

James K. Galbraith, an economist at the University of Texas at Austin, suggests too much attention is given to when recessions technically begin and not enough to other measures of the economy.

“It’s just a word. A recession technically lasts during negative quarters. But that doesn’t mean you’re back to prosperity once you have positive growth. You’re back to prosperity when the unemployment rate is back around 4 percent,” Galbraith said. And that, he said, could take years.

Recession, shmession. It’s all word play until Christmas comes around and nobody gets any presents.


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