Supposedly the Recession is over but does it really matter?

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According to economists and theorists alike the recession is over but does it really all matter? Well according to About.com a recession is defined as a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters. Definition of a Recession. Ok that seems vague as it does not take into account anything much of consideration. So let’s use that as our basis, since our GDP has recovered over the past few quarters we are officially out of a recession, but quite honestly who cares? Call it what you will but things seem to be at an all time high, last week was a devastating week for layoffs with almost 60K upcoming layoffs announced (and this week does not seem to be much better so far either), unemployment has just reached over 10% for the first time since 1983 and quite honestly those numbers are jaded. The real unemployment numbers are probably closer to 20% considering many do not collect unemployment or report that they are unemployed and if you factor in underemployment we are probably talking about closer to 40%. Wow that’s a whole lot of people.

Now to compound matters our own president has indicated repeatedly that unemployment will continue to rise and “we are not out of the woods yet” and most recently job losses will abound, Obama warns on job losses, urges export boost. Further while we have “started to see a recovery” another article in the Sun-Sentinel written by the Associated Press indicates that jobs remain at record and historic lows as companies are resistant to hire regardless of a recovery, Job openings stuck near record-lows as companies hesitate to hire despite recovery. What’s interesting and a bright light is that according to this report small businesses are responsible for the hiring at a whopping 60%. Aren’t these the very businesses that our current administration is trying to squeeze with taxes and increases to stratospheric levels with allowing health care premiums to skyrocket. While I understand they are trying to bring Health Care Reform might it be too late? Could we slip into a depression because small companies will not be able to hire because they can’t afford to? Would Health Care reform even help? Most people have lost faith in government initiatives these days anyway. We have seen government programs before that are suppose to do things but just fail. How about those credit card reforms to stop credit card companies from gauging us? Looked at your credit card interest lately? Seen them raise your APR even if you have not done anything wrong? Have they shrunk your limits? How about Cash for Clunkers, Stimulus Recovery Package? Bailing out banks? Any of this helped us yet? Still waiting?

So while this all sounds cynical and politically motivated it is not. It is just truthful of the world we are currently living in today. So to summarize it all, we are all on the road to recovery but unemployment is up and will continue to rise, jobs are non existent, health care is out of reach for many and we have no clear direction of what is going to get us through this. So I once again ask the question, the recession is over but does it really matter?