So… I hear that we are moving out of a recession. At least, according to that narrow definition of recession: ‘two consecutive quarters of negative growth of GDP’. So why are we still feeling so glum?
I don’t want to cast a damper on the jubilation of economists and government leaders, but, just like we felt we entered recession a long time before it was officially announced, we now feel we are still wrestling with the soggy morass that recession left behind. For some of us (perhaps most of us) the recession is only now beginning to bite, as the savings and redundancy packages are running out, we cannot move from our homes, and there is still no decent job on the horizon.
And am I the only one who feels that if we are too quick to announce that things are back to normal, we are perhaps not learning from the lessons of this recession? Weren’t we hearing just a short while ago that the market economy has had its day, that the financial system needs to change, that we need to rethink globalisation (perhaps along the controversial lines proposed by Joseph Stiglitz)?
But now, if things are back to what they were, we can quickly sweep the messy, unfinished, tentative new models under the carpet. Forget new paradigms. And reopen for business as usual.
Can anyone else feel that chill wind of doubt?