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Do you think all the media reports about a double recession will actually cause a double recession?

In my area, business has been picking up, slowly but surely. The other day, I overheard a business man saying that his business was picking up a lot and he needs the extra help but does not want to hire anyone because he heard that we were going to be entering another recession soon. Do you think that because of the media talking non-stop about another recession that we will be more likely to go into another recession than if it wasn't talked about so much?

A side note- this reminds me of what my economics teacher told me in high school. She said that every time Alan Greenspan spoke, the stock market went down that day.

Answer Question
 
JeremysMom

Asked by JeremysMom at 6:49 PM on Jul. 5, 2010 in Politics & Current Events

Level 35 (75,344 Credits)
Answers (20)
  • I think media speculation has a lot to do with the economy.
    layh41407

    Answer by layh41407 at 6:51 PM on Jul. 5, 2010

  • Yes.
    Tell people that there might be another recession so people start holding onto their money and spending less in fear that hard times are going to get worse. But the lack of spending causes the recession due to the lack of stimulation in the economy.
    outstandingLove

    Answer by outstandingLove at 6:52 PM on Jul. 5, 2010

  • No, but I think a double dipper is inevitable anyway.
    itsmesteph11

    Answer by itsmesteph11 at 6:57 PM on Jul. 5, 2010

  • I should mention though that i don't necessarily believe it will cause another recession. But if another recession is on the way it will certainly make it worse.
    outstandingLove

    Answer by outstandingLove at 7:01 PM on Jul. 5, 2010

  • I think people become spooked because they listen to the other journalist and reporters giving commentary as if they are experts. I wish they would get actual people who actually work in the field who can give real opinions instead of what they had heard. I get tired of dem/repub. strategists giving opinions as if it is fact. The opinion is always scewed (as it is suppose to be for a strategist), but that isn't what we need. We need the Stewart Varneys and the Steve Forbes who work in the industry (or have) and completely understand the issues.
    jesse123456

    Answer by jesse123456 at 7:14 PM on Jul. 5, 2010

  • Only time will tell,I hope not though.
    mamaofficer

    Answer by mamaofficer at 7:17 PM on Jul. 5, 2010

  • It's possible.
    QuinnMae

    Answer by QuinnMae at 7:23 PM on Jul. 5, 2010

  • Consumer and business confidence is one of the biggest determining factors in the economy. Also, being in business myself (between trying to make money for my boss or for myself) I know one thing for absolutely certain...no business will ever hire, ever, until the demand for their product exceeds the production of the current employees. That IS the facts, no matter how many people try to tell you tax breaks, or whatever, will increase hiring. It doesn't. An employee is only worth hiring if they can produce something the company needs, and that the production of that employee is cheaper than the hiring of that employee. And therefore, capitalism is a demand-based economy!

    lol, sorry about the lecture.
    stacymomof2

    Answer by stacymomof2 at 7:34 PM on Jul. 5, 2010

  • It's a possibility, but not the only possibility. It's hard to be optimistic when we have an enormous oil spill going on 75 days, two wars with no end it sight, real unemployment is 17%, housing values are still low, and the stock market is volatile.  

    mancosmomma

    Answer by mancosmomma at 7:40 PM on Jul. 5, 2010

  • It doesn't help.


    But honestly, I just can't believe its getting so much worse. People were PACKED into BEST BUY, they lined up for HOURSE to spend a few hundred on an IPHONE.....I can't help but wonder how many of THEM were unemployed and blowing this cash.....not paying their mortgage,,,,,,

    sweet-a-kins

    Answer by sweet-a-kins at 7:55 PM on Jul. 5, 2010

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