What is a recession? A recession is declared when GDP is negative for two consecutive quarters or more, a few quarters before it is actually the start of an economic recession. GDP is defined as gross domestic product and that basically means the total value of goods produced by the United States, for the year. The first signs of a recession are negative growth followed by a small amount of positive growth. Because American citizens don't have money to spend, they don't spend, and the consumer spending side of the economy drops dramatically. Unemployment rates also play a role in determining a recession (22). Proper management of money and finances could lead an economy out of a recession. There are major flaws in the way we live that people do nothing to fix. Most people are in debt, at the end of 2005 “wage growth was lower because 46% of total income growth in the corporate sector was distributed as corporate profits, much more than the 20% in previous periods.” (24) Household income fell five consecutive years and was 4% lower. Americans' average wages are low. America's population growth is expanding very rapidly; the number of jobs relative to population growth is almost unrealistic. Only one point nine percent more jobs have been created since the start of the last recession. The unemployment rate is four point six percent. This means that many people have no work; the percentage of people who have a job was 1.3%. This means that more people are not working than have a job. (24) Poverty was skyrocketing in two thousand; the rate was eleven point three percent and in four years it rose to twelve point seven percent; this is approximate... half the paper... spend so how can making goods and services more expensive help? Obama is a very good man with what I believe are good intentions. But his money management skills could use a lot of work. I don't see what makes no sense to him if the US is in debt and then he continually spends money on things we don't need like visiting other countries, flying first class on Air Force One. Instead of trying to make peace treaties with other countries, we need to increase education in schools and provide them with the money and resources they need to educate children and make them capable of running a country. Children are our future and if we don't do a good job of making it the best it can be, we will end up in the same situation we are in today. This should turn around the finances of this country and we will soon live in prosperity.