Three Cheers for 'Reganomics'

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unemployment is rising
consumers are spending less because they have less disposable income due to necessitiy costs rising sharply
less consumption, not because of exports

LP of TX 8:18PM April 29, 2008

The reason it "feels" like a recession is because exports are up. A recession is a contraction of GDP which means we are producing fewer goods and services which in turn means we are consuming less. In the current environment, unemployment is staying low and GDP growth is positive because we are going to work and producing more goods for export. But because we are exporting more our consumption is less. Less consumption gives the "feel" of a recession.

markg of CT 12:11PM April 23, 2008