What Actually Double Dip Recession Is?• Double-dip recession is a situation wherein an economy faces another recession shortly after recovering from the previous one, due to a negative growth in GDP.
• The occurrence of double dip recession is very rare in the economic history of United States being the years 1913,1920 and the period of 1980-1982.• The American economy has faced 33 recessions in all.
• Rating agency downgraded US.• US hitting double- dip recession which will pull the whole world down once again. But is it seriously
• 50% chance of falling back into negative growth and facing a double-dip recession.
• Unemployment rate is still high, while consumer spending shows very passive growth, it seems economy is about to enter double dip recession.
• Technically to call it a double-dip recession, US has to see two consecutive quarters of negative growth. In 2009, the GDP of US showed negative growth of - 2.6% which increased to positive growth of 2.8% in 2010. In 2011, the growth is estimated to be 3%. If US has to hit double-dip recession, the economy has to fall from 3% growth to zero and further down to negative growth.
• Government has rolled up its sleeves to ensure that phenomenon doesnt repeat by 2012.• With 13.9 million still unemployed Americans since the recession of December 2007.
RECESSION RECOVERY.• It can be very well avoided by the government by introducing:• Short-term unemployment benefits.• Price stabilization.• Reduction in tax rates.