Economist Says Recession Is Already Here

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(UNDATED) - One Indiana economist says the U.S. economy is already in a recession.

Bill Witte is an associate professor of economics at Indiana University. He believes the recession started late last year and will continue through the first half of 2008. However, he believes this recession will be mild.

Witte blames the subprime mortgage crisis, the housing market and sweeping layoffs in manufacturing for the tanking economy. The labor department reports Indiana currently has the third highest unemployment claims in the nation--behind only California and Michigan.

Witte says the tax rebates being mailed in May could have a positive effect on the economy if the money is spent. However, he feels many of us will save the money.

The IU economist also says it's too early to predict if Indiana's recently approved property tax reform package will help the economy. He says while property taxes are being cut, consideration must also be given to the increase in Indiana's sales tax.

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