President Obama warned that it will take “many more months” for recession to be really over. This statement was made after the GDP figures revealed that the dip was better than expected for the second quarter.
Even with positive indicators such as rising stock indexes there are still other factors that indicate that there is still a long way to go before a recovery. Job data still reveals that companies are still making job cuts to stem losses. The economy needs a stable job market to ensure that the public has the buying power to aid consumption.
“It will take many more months to fully dig ourselves out of a recession – a recession that we’ve now learned was even deeper than anyone thought,” Obama said in his weekly radio and Internet address. And when we receive our monthly job report next week, it is likely to show that we are continuing to lose far too many jobs in this country. As far as I’m concerned, we will not have a recovery as long as we keep losing jobs.”
During the second quarter, the fall of US GDP reached an annual rate of 1% compared to the 5.4% and 6.4% dips in the previous two quarters. Economists claim that this data is solid proof that the recession is bottoming out. Obama linked this as the positive effect of his $787 billion stimulus plan that he signed when he came on board as the country’s chief.
Source: CNN
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Tags: GDP, Gross Domestic Product, Obama, Recession, Recovery