Wall Street's looming 'earnings recession' is a good thing

It's a sign that the economy is still growing

A graph.
(Image credit: Illustrated | Alliya23/iStock, champc/iStock)

Wall Street is getting nervous, with stocks slipping and then rebounding as the latest data comes in. What has got everyone worried isn't an old-fashioned recession though. It's an "earnings recession" — the "earnings" in this case being "earnings per share," i.e. the money that companies spit out to their shareholders.

And as it turns out, an earnings recession is probably good news for Americans as a whole.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.