The Slump That Broke The Public's Back

This recession is about average, as postwar recessions go. Unemployment is at 7.1%. According to the usual definition of a recession as two consecutive quarters of negative growth, it barely qualifies at all. Real gross domestic product grew at an annual rate of 1.8% in the third quarter of 1991, was flat in the fourth quarter, and appears to be declining only slightly in early 1992. Moreover, the recession was preceded by a record peacetime expansion. Why, then, is there such pervasive economic gloom?

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