The Worst Recovery Post-WWII
There have been 11 recessions since WWII, and the first ten averaged real GDP growth of 4.6%, while President Obama’s recovery (now three years in) has averaged just 2.2%. But what about the President’s argument that this was the worst recession since WWII? The recovery is still the worst:
“Indeed, if we limit our comparison to the five longest recessions in the past 65 years (each of which lasted at least 11 months), we find the following: During the four pre-Obama recoveries from such recessions, average real GDP growth in the first three years was a whopping 5.9% — dwarfing the 2.2% figure under Obama.
“Nor are things getting better. Over the first two years of the Obama recovery, average real GDP growth was 2.2%. During the third year, it remained at 2.2%. So far in 2012, it has been 1.8% annualized. In the most recent quarter, it was 1.5% annualized.”
In terms of jobs, this is also the worst recovery:
“According to the BLS, the employment-population ratio — the percentage of Americans who are employed — was 59.4% during the last month of the recession (June 2009). That figure has now actually dropped to 58.4%. Three years into the “recovery,” a lower percentage of Americans are employed than during the recession.
“In marked contrast, in the last four pre-Obama recoveries from recessions spanning at least 11 months, the average improvement in the employment-population ratio over the same span of time was 2.6 points — a swing of 3.6 points from Obama’s tally of minus 1.0%.”
The Heritage Foundation also has a chart showing just how poorly the current recovery has been for employment:
It’s clear that we’re not getting better very quickly, but what is also clear is that the fiscal cliff known as “taxmageddon” will catastrophically impact our economy. Allowing this to happen will upend even the current, slow recovery and most likely plunge us back into a recession.
See how taxmageddon will impact you here.