What’s in a Name?
It’s official, they are using the “R word.” As in recession.
Yesterday, the National Bureau of Economic Research issued a press release determining that December 2007 was the peak month, and that the “subsequent decline in economic activity was large enough to qualify as a recession.”
Does the label really matter, since the actual conditions we’re experiencing are the same? As Shakespeare put it, “What’s in a name? That which we call a rose/By any other word would smell as sweet” (Romeo & Juliet).
Kate was interviewed by NPR’s Marketplace for their story, Black Friday Not Looking So Black:
If right about now you’re wondering where they’ve been, join the club.
KATE BARR: My initial reaction is, so what.
We called around to get some opinions on how much today’s announcement really means. Kate Barr’s the executive director of the Nonprofits Assistance Fund.
BARR: Maybe if the word had been more openly used back in June or July, we could have gotten a jump-start on some of the discussions about how to allocate resources, how to allocate budgets, how to allocate charitable giving.
Do you think using the word recession would have changed the conversation?
Reactions from around the web:
- Don’t un-start your Campaign because of a Recession
- U.S. in Recession: Minnesota is one of ten states with a 50% increase in unemployment since 2006
- Recession in U.S. Started in December 2007, NBER Says
Other links:
- Obama Must Mobilize Supporters to Help Nonprofits
- Philanthropy’s Response to the Financial Crisis
- Accountability Turkey (or what government and business can learn from nonprofits)
- Recession Could Cause Large Increases in Poverty
In a side note, I spent last week at home with my family, as some people are lucky enough to do. Over lunch on Saturday, I asked my brother (who works at a large bank in NY) how things are going. What was most interesting about the conversation was the overlap between what we were seeing. Nonprofits in Minnesota, financial institutions in New York, and businesses worldwide are experiencing some of the same financial challenges, in particular when it comes to access to capital. He recommended this recent article in the Economist, Managing in the downturn: Desperately seeking a cash cure. It’s a fascinating read, especially as the nonprofit world thinks about how to respond to this crisis. What is our equivalent of “disruptive innovation” and “changing the game?”