April 30, 2011

DUDE, WHERE’S MY RECOVERY? “Seven quarters into the Obama recovery, GDP growth has averaged an annual rate of only 2.8 percent. In contrast, since 1970, the first seven quarters of previous recoveries averaged 4.6 percent. The poor growth rate is especially surprising since the preceding recession was so severe, there should have been ample room for high growth as the unemployed returned to work. For example, the Reagan recovery followed a similarly high unemployment rate and saw the economy grow at an average annual growth rate of 7 percent . . . . The slight decrease in unemployment – currently at 8.8 percent — has been touted as good news. Yet that slight drop has largely been the result of job-seekers giving up looking for work and leaving the labor force. On top of that, the new jobs that have opened up have primarily been temporary jobs, the number of permanent jobs has actually fallen.”