This month marks the two-year anniversary of the official start of the recovery from the 2007-09 recession. But it’s a recovery in name only: Real gross domestic product growth has averaged only 2.8% per year compared with 7.1% after the most recent deep recession in 1981-82. The growth slowdown this year—to about 1.5% in the second quarter—is not only disappointing, it’s a reminder that the recovery has been stalled from the start. As shown in the nearby chart, the percentage of the working-age population that is actually working has declined since the start of the recovery in sharp contrast to 1983-84. With unemployment still over 9%, there is an urgent need to change course.
Some blame the weak recovery on special factors such as high personal saving rates as households repair their balance sheets. But people are consuming a larger fraction of their income now than they were in the 1983-84 recovery: The personal savings rate is 5.6% now compared with 9.4% then. Others blame certain sectors such as weak housing. But the weak housing sector is much less of a negative factor today than declining net exports were in the 1983-84 recovery, and the problem isn’t confined to any particular sector. The broad categories of investment and consumption are both contributing less to growth. Real GDP growth is 60%-70% less than in the early-’80s recovery, as is growth in consumption and investment.
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3 comments:
Right -
'We're From The Government & We're Here to Help You'
I'm 54 years old and if there is one thing that I have learned in life about the government it is this.
When ever someone comes-up to you and says the statement above - 'that he is from the government and he is here to help you' - remember this - HE IS YOUR ENEMY AND YOU HAD BETTER TREAT HIM AS SUCH.
9:09 Post
I'm 62 and my experience is the same as yours.
The person from the government is truly your enemy. I have had many knocks - and my experience is exactly the same as yours.
was it pres. reagan who said when you hear that statement; RUN?
i know he said the government is not he answer, it's the problem.
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