White House Almost Admits a Recession

One of President Bush's top economic aides, Edward Lazear, chairman of the Council of Economic Advisors spoke on CNN's "Late Edition" on October, 18, 2008 to let the American people know his view of the current state of the economy while admitting to nothing and relishing in ambiguities.

Lazear hints at what many financial analysts have already observed and what most of the American people are currently experiencing-recession. This has been one of the few times the White House has even mentioned the word, let alone hint that it may be coming when we know already that it is already here.

The uncertain terms from Lazear came in statements such as, "We are seeing what I think anyone would characterize as a recession in certain parts of the country." This being notable for for his subjective analysis that it is only his thought and also that the recession is not hitting all of the country, only parts, which seems to contradict the fact that nations the world over are passing economic bailout bills to try and fight the global downturn.

In other statements, Lazear alludes to the fact that we are probably in a recession but then is quick to point out that the $700 billion rescue plan will positively stimulate the economy for a recovery that will take "a few months before we really see a significant impact." He also said that "we've seen impacts already," and "that banks are now willing to lend to one another." He said these recent positive impacts are "a huge plus for the economy because the big problem has been that banks have been unwilling to trust one another."

Lazear went on to criticize Democrats, with their proposed stimulus projects such as road and bridge work, that such projects will be slow and are too narrowly focused to make any positive impact on the economy as a whole. He is quoted as saying that the projects "may be good policy. That's something that Congress has to decide. But we can't really think of that as a stimulus that's going to get the economy turned around the short run."

As the nation waits for the credit lines open up and the economy to flow again, we are being told that there only may be a problem in certain parts of the country and Lazear admits that in these areas unemployment is "much higher" than the national average of 6.1 percent, up from 4.0% last year. We can only hope that the perceived recession will end soon.

Sources:

CNN - "Late Edition" 10/19/2008

Ros Krasny, "White House advisor says parts of U.S. in recession", Reuters.com

Staff, "White House aide says parts of US in recession", Associated Press