Or is it? Unless you’re asleep at the wheel, you must aware of the controversy with the recent changing of definitions in Washington. Congress attempted to change the definition of “find.” This week the white house attempted to change the definition of recession.
A recession is defined academically as two consecutive quarters of declining gross domestic product (GDP). At least that was the definition when I was in college during the 1980s. But I noticed that both Wikipedia and Investopedia have updated their definition of recession as of July 26.
Perhaps not a surprise, because the media and democratic party seem to be operating from the same talking points. See no evil, hear no evil, say no evil
In any event, in my last article I did mention consumer spending increases. Personal consumption expenditures (PCE) increased 0.2% in May 2022. However, “real” PCE was down 0.4%. That’s because inflation hit 9.1% last month.
Meanwhile the White House is working to redefine “inflation.” Do they really think that redefining words will cause Americans not to feel the effects the recession and inflation? Considering how the needle has moved on words like “woman” and “fascism,” that may be exactly what certain politicians think.
In any event, consumers are feeling a sharp pinch at the pump, in the grocery store, and anyplace else they spend money.
Jobs
Another common talking point revolves around “new” jobs. But could it be that these “new” jobs are the “old” jobs that had been eliminated during the pandemic? While it is awesome that these jobs are coming back online, it may be disingenuous to call them “new” jobs.
I was also thinking of the two methods we have to spend money as a result of the pandemic. For example, the pre-pandemic and peri-pandemic way of buying groceries are different. Will these two parallel indefinitely? Will the pre-pandemic methods be back in favor? Will the peri-pandemic way win out? Or will there be a hybrid in the post-pandemic world?
As Always…
Thanks for reading! I hope this information provides food for thought. Remember that I am not a certified financial planner, a certified public accountant, a licensed real estate agent, etc. My content is for educational purposes. I am a math educator who happens to have a finance degree. Like they say, never take financial advice from a math teacher! (Do they really say that?)
But you should spend less than you earn, invest the difference, and stay out of debt!
I would so appreciate your sharing my content with anyone you feel could benefit. And if you would like a free exploratory conversation or just want to shoot the breeze about personal finances, call me and leave a message or send a text to 570-731-0425.