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The economy actually is not in a recession
U.S. gross domestic product declined at a 0.7% annual rate in the first three months of the year, according to a government report released today, but don’t think that means the economy is actually contracting. The report doesn’t accurately reflect what’s happening in the real economy, where more workers are being hired, incomes are rising, credit is expanding, businesses are optimistic and housing is turning the corner. It’s notable that gross domestic income — an alternative (and some say preferable) method of measuring the size of the economy — grew at a 1.4% annual pace in the first quarter. In the ... (full story)