Report: Economists say recession over
Is the recession over? Economists polled by the Wall Street Journal say yes, and they suggest that’s a big reason why Federal Reserve Chairman Ben Bernanke should stay. Economists date the start of the recession to December 2007 and a majority agrees that the recession is coming to an end.
Productivity is a key ingredient for rising living standards because it means that companies can pay their workers more with the wage increases financed by rising output. However, in the current recession, companies have been using the productivity gains to bolster their bottom lines in the face of declining sales. Many companies have been reporting second-quarter earnings results that have beaten expectations despite falling sales, due largely to their aggressive cost cutting.
Many economists believe the current recession is on the verge of ending. If the economy starts to grow in the second half of this year, companies are expected to switch from layoffs and trimming workers’ hours to boosting employment as demand for their products increases.
Sources: CNNNews.com, Associated Press, The Wall Street Journal