subject: Important Things To Understand About Economic Recession Statistics & Predictions [print this page] Numbers Play a Role Numbers Play a Role
We all hear talk about the current recession, but too few have an in-depth understanding of economic recession statistics and indicators. While it might at first seem a bit intimidating to learn, these measures actually make it easier to understand how economic predictions are made. Keep reading and I'll explain some basics.
Understanding Statistics
The more I learn about economic recession statistics, the less faith I have in their degree of accuracy. They don't contain the depth of scientific precision many of us like to think they do. In fact, economic predictions are often grossly misrepresented. Despite the fact that they're undermined in importance or distorted, they still reveal great detail about the current economic recession.
Four Indicators
Facts about our current economic recession are supplied by the National Bureau of Economic Research (NBER). NBER compares these data with those six recessions that have occurred in the USA within the last forty years:
1. Income - Personal income including take-home pay and real expenditures decreased drastically and remain rather low. These numbers shrink because of factors as unemployment, insufficient employment and inflation, but are affected by consumer spending habits too.
2. Industrial Production - Our current economic recession, according to the NBER, shows levels of industrial production even lower than in any other past recession. Unfortunately, they expect them to get even worse in a time span that is longer than just a few months.
3. Record Unemployment - The domino effect of record high unemployment is truly hurting our nation. With fewer people in the work force, a lower amount of income taxes are being received. National spending is increasing our deficit as we spend more on unemployment benefits. The rate of unemployment is higher in the current economic recession than in any other within the past 40 years.
4. Gross Domestic Product (GDP) - What is the difference between a recession and a depression? In a recession the GDP drops significantly over several months, but by less than ten percent. But during a depression, the GDP falls by more than ten percent. The GDP has been reported to drop to an all-time record low.
Educate Yourself
By educating yourself about economic recession statistics and indicators, you not only empower yourself, but are able to make better decisions as you protect yourself and loved ones. Without doing this, there is no way you can protect your financial stability. Although the Internet is a very powerful learning tool, don't believe everything you read. View information with a skeptical eye and never stop learning.
