The double-dip recession is rare. In modern times, since World War II, there was a double-dip recession during the 1980-1982 period. The economy was in a recession in the 2nd and 3rd quarters of 1980. It then recovered (by GDP standards) and fell back into recession in the fourth quarter of 1981 and the first quarter of 1982.

One thing that happened during that time period that we do not have now is inflation and high interest rates. High inflation defeated income growth. Some economists say unemployment will do the same thing now. However, the Federal Reserve is determined to keep interest rates low through 2010.

There are similarities and differences between the 1980-82 double-dip recession and the Great Recession. The one thing we know is that we are generally into a recession before we know it. If we fall into a double-dip recession, we will likely be into that second dip long before anyone can really call it.