WHEN THE NATIONAL Bureau of Economic Research (NBER) announced in December 2008 that the U.S. economy had been in a recession since the previous December, it hit American citizens with a dull thud. The word “recession” had been whispered over cubicles and at dinner tables, splashed in sensationalist headlines on tabloids and magazines, and calmly and firmly denied by politicians for months. By the time the rumors were confirmed, it was hardly news. Still, forewarned is not forearmed, and assuming the worst did nothing to diminish the ensuing fear. Traditionally, a recession is defined as two consecutive quarters of decreasing gross domestic product, although the official designation is determined by the NBER as “a significant decline in economic activity spread across the country, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production and wholesale-retail sales.” By either standard, the American economy is in a recession. While this is surely no cause for celebration, it is also not cause for apocalyptic speculation. Economic contractions are as natural and necessary as expansions, and although it may be more severe than normal, it is also bound to turn around.
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.