Hey, Folks: We’re Not in a Recession | Washington Monthly
The critics often misunderstand how the Bureau of Economic Analysis calculates GDP. The BEA is a Commerce Department agency staffed by hundreds of professional economists and statisticians and one I know well since I oversaw it as undersecretary of commerce in the 1990s. This week, the BEA reported that the nation s GDP, adjusted for inflation, declined at an annual rate of 0.9 percent in the second quarter, following a 1.6 percent decline in the first quarter. That sounds dispiriting, but behind the headline numbers, the basic growth elements provide a more encouraging gauge of the economy s path and prospects.
It may not be a recession, but it’ll do until the real one comes along.