econscius

Obama Presidency 2009-2012: Weakest Economic Recovery On Record

In 2012 Elections, Economy, Obama Administration on October 19, 2012 at 7:34 pm

When deciding who to vote for President, the footnoted piece provides a sense of perspective about the exceptionally weak economic recovery of the Obama presidency.   This recovery is just one-third as large as the “Reagan” recovery from the 1980-2 recession.  The recession ended more than three years ago, but people feel it has not ended because the recovery is so tepid.  The Wall Street Journal said:

It’s important to understand how unusual this kind of weak recovery is. Deep recessions like the one from December 2007 to June 2009 are typically followed by stronger recoveries, as there is more lost ground to make up.

The most recent comparable recession occurred in 1981-1982. Yet as the nearby chart shows, the Reagan expansion exploded with a 9.3% quarter and kept up a robust pace for years. By the 12th quarter of expansion, growth popped up to 6.4.%. At this stage of the Reagan expansion, overall GDP was 18.5% higher versus 6.7% for the Obama recovery, according to Congress’s Joint Economic Committee.

Even comparing this recovery with the average since the end of World War II, the Obama growth rate is well below the norm of 15.2%. The U.S. is running about $1.5 trillion of economic output behind where it should be.

This may sound like an abstraction, but it is the difference between a robust job market and lost opportunity for millions of Americans. It is the difference between a small federal budget deficit and more than $1 trillion for four straight years. It is the difference between a rising or falling poverty rate. [1]

[1] http://online.wsj.com/article/SB10000872396390443477104577553211912280818.html

Job fair picture from Wikipedia Commons.

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