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 seriouslyhappening?

• 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 doesn't 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.