Tags: Recovery | worst | 50 | years | GDP

US Recovery Ranks as Worst in Last 50 Years

By    |   Friday, 27 Jul 2012 12:54 PM

The U.S. economy’s growth in the three years since the Great Recession ended in June 2009 has been the weakest of any of the post-recession recoveries in the last 50 years.

That includes the recessions that ended in 1961, 1970, 1975, 1982, 1991 and 2001, The Wall Street Journal reports. The recession of 1980 didn’t have a three-year recovery, as it was cut short by the 1982 recession.

The 1.5 percent expansion in second-quarter gross domestic product, announced Friday, puts total growth for the last three years at 7.1 percent. The first three years of recovery after the recessions of 1961, 1970, 1975, 1982 and 1991 averaged total growth of 16 percent.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

Even the weak three-year recovery after the 2001 recession produced an expansion of almost 9 percent.

The paltry rebound comes despite massive easing by the Federal Reserve that has pushed interest rates almost to zero. In addition, government borrowing has mushroomed at about three times the normal rate for post-war recoveries.

“In other words, Washington already has unleashed far more firepower on the downturn than usual and received scant bang for its buck,” writes Spencer Jakab of The Journal.

Economists weren’t exactly doing jumping jacks after news of the puny second-quarter growth Friday.

“We have an anemic recovery with really no momentum,” Julia Coronado, chief North American economist for BNP Paribas, tells Bloomberg. “It’s reflective of uncertainty in the global outlook. It’s a frustrating picture for policy makers. The report is supportive of further easing.”

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation




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Friday, 27 Jul 2012 12:54 PM
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