# Plain Language Summary: Senate Resolution on Recession Definition

This resolution is essentially the Senate saying what it thinks a recession should officially be called. Right now, there's no single agreed-upon definition of when the country is in a recession. Different organizations use different measures, which can lead to confusion about whether we're actually in a recession or not. This resolution expresses the Senate's opinion that a recession should be defined as two consecutive quarters (that's six months) where the economy shrinks rather than grows. In other words, if the gross domestic product—the total value of everything the country produces—goes down for two three-month periods in a row, that should count as a recession.

Here's why this matters in real life: when people hear the word "recession," it affects how they feel about the economy and their own finances. It can influence whether people spend money, invest, or look for jobs. Right now, the National Bureau of Economic Research is the organization that officially declares when recessions start and end, and they use a more complicated formula than just looking at GDP numbers. This resolution doesn't actually change how anyone officially declares recessions—it's just the Senate stating what it believes should be the standard. It's a symbolic statement rather than a law that forces any changes, so it won't immediately affect government policy or how economists measure the economy. However, it does signal what some lawmakers think the definition should be if the country ever decides to standardize how recessions are officially called.

A resolution expressing the sense of the Senate that the historic definition of a recession is 2 negative quarters of gross domestic product growth.

Cruz, Ted

 <p>This resolution states that two consecutive quarters of negative growth in gross domestic product constitutes a recession.</p>