FACT CHECK - Weaker Recoveries Followed 2001 Recession & 1980-1 Recession Than Current Recovery From 2007-9 Recession

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    Aug 07, 2012 1:16 AM GMT

    Right-wing ads funded by dirty Repub Super PAC $$$$$$$ have been running - claiming that this is the "worst economic recovery America has ever had".

    The ads are lies.


    In fact the ads get a "LAUGHABLE" rating.

    Not coincidentally - I rate our resident conservaposse as "LAUGHABLE" as well.

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    Aug 07, 2012 1:35 AM GMT
    I rate you as desperate.


    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.

    Mr. Obama is running for re-election as a tribune of the middle-class against "millionaires and billionaires," but his Presidency has been the worst for the middle class and the poor in decades.

    By the way, the federal Bureau of Economic Analysis chose this quarter to revise the post-2008 GDP numbers based on more detailed data, and it shows that the recovery was even weaker in 2010 than previously estimated. The growth rate for the first two quarters of 2010 were revised sharply downward, and for the year to 2.4% from 3%. The revisions also show the trough in 2009 was not as deep as originally thought.

    This further discredits the value of the government's 2009-2010 stimulus spending bonanza. Business investment and inventory buildup were both revised downward for 2010, which suggests that the stimulus did very little to boost business confidence.

    From the article cited here: http://www.realjock.com/gayforums/2562582
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    Aug 07, 2012 1:53 AM GMT