Confused by a Slight Recession

Policy fights within the Administration and on the Hill

The figures poured out in a flood that swept away all doubt: when Ronald Reagan early last week conceded that the U.S. economy is once again in a recession, he was only recognizing reality. Statistics promptly showed sizable declines in industrial production and consumer spending, a September rate of housing starts that was the third lowest on record, a .6% third-quarter drop in total national output of goods and services and even an unexpectedly large $468 million third-quarter loss reported by that onetime paragon of profit, General...