Welcome to your Tuesday open thread. What’s happening today?
According the the National Bureau of Economic Research, the Great Recession ended in June 2009.
The Business Cycle Dating Committee of the National Bureau of Economic Research met yesterday by conference call. At its meeting, the committee determined that a trough in business activity occurred in the U.S. economy in June 2009. The trough marks the end of the recession that began in December 2007 and the beginning of an expansion. The recession lasted 18 months, which makes it the longest of any recession since World War II. Previously the longest postwar recessions were those of 1973-75 and 1981-82, both of which lasted 16 months.
In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity. Rather, the committee determined only that the recession ended and a recovery began in that month. A recession is a period of falling economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. The trough marks the end of the declining phase and the start of the rising phase of the business cycle. Economic activity is typically below normal in the early stages of an expansion, and it sometimes remains so well into the expansion.
The committee decided that any future downturn of the economy would be a new recession and not a continuation of the recession that began in December 2007. The basis for this decision was the length and strength of the recovery to date.
Does it feel like the recession is over? I think we actually need different economic descriptors because it’s just strange to say we’re not in a recession when unemployment is so stubbornly high.
A report released yesterday by the Justice Department takes the FBI to task for spying on activists groups with little or no justification. I’m sure you’ll be shocked to hear that most of these groups were left-leaning groups mostly peace & environmental activists.
The FBI in recent years opened investigations into some U.S. activists with little basis, unjustifiably extended the duration of the probes, improperly retained information about activist groups in its files, and classified its investigations of “nonviolent civil disobedience” as investigations into “acts of terrorism,” according to a report released today [1] (PDF) by the Justice Department’s Inspector General.
The FBI activities reviewed by the Justice Department took place from 2001 to 2006, and involved groups including the Thomas Merton Center (a Pittsburgh social justice center), People for the Ethical Treatment of Animals (PETA), Greenpeace, The Catholic Worker (communities of religious pacifists) and a Quaker peace activist.
The report by the Justice Department watchdog didn’t find that the FBI targeted these groups on the basis of their free speech activities — which would be a serious violation [2] of FBI guidelines — but did fault the agency for other reasons, most notably a “factually weak” basis for opening investigations.
I don’t think the FBI has changed all that much from its J. Edgar Hoover days. It’s still chasing political grudges.