Skip to comments.The Worst Economic Recovery Since The Great Depression
Posted on 01/12/2012 5:40:12 PM PST by matt04
The record of President Obamas first three years in office is in, and nothing that happens now can go back and change that. What that record shows is that President Obama, with his throwback, old-fashioned, 1970s Keynesian economics, has put America through the worst recovery from a recession since the Great Depression.
The recession started in December, 2007. Go to the website of the National Bureau of Economic Research (www.nber.org) to see the complete history of Americas recessions. What that history reveals is that before this last recession, since the Great Depression recessions in America have lasted an average of 10 months, with the longest previously lasting 16 months.
When President Obama entered office in January, 2009, the recession was already in its 13th month. His responsibility was to manage a timely, robust recovery to get America back on track again. Based on the historical record, that recovery was imminent, within a couple of months or so. Despite widespread fear, nothing fundamental had changed to deprive America of the long term, world-leading prosperity it had enjoyed going back 300 years.
Supposedly a forward looking progressive, Obama proved to be Americas first backward looking regressive. His first act was to increase federal borrowing, the national debt and the deficit by nearly a trillion dollars to finance a supposed stimulus package, based on the discredited Keynesian theory left for dead 30 years ago holding that increased government spending, deficits and debt are what promote economic growth and recovery. That theory arose in the 1930s as the answer to the Great Depression, which, of course, never worked.
(Excerpt) Read more at forbes.com ...
This economist says about the same thing.
I’ve heard the statement that the recession started in 2007 before, but I don’t understand what that is based on. Did the recession start then, or in late 2008?
But it doesn't look good to say that. So it's politically correct to point to 2007, and George W Bush, and to say that the recession basically started then.
It’s a bit partisan to claim that Obama is to blame for the start of the recession. Yes, it’s his fault that the economic recovery is taking this long, but all of this happened under Bush’s watch, the Subprime Loan mess.
That’s what I thought, but I wondered if there were some real numbers that would back up the 2007 claim.
Sorry. Didn’t mean to criticize your boy. Have fun bashing Bush; I won’t interrupt.
I’m not bashing Bush, I’m just stating the facts. Don’t you remember that McCain was actually competitive in the polls until Lehman Brothers failed in Sept ‘08 and the economy went into a free fall by then, thus handing the Presidency to Obama on a platter?
Yeah...and Bush tried ...what was it 6 or 7 times to get Freddie and Fannie audited and the dims lead by Barney Frank and Dodd resisted him at every point.
And then the Sept financial crisis happened.
I remember it clearly...sadly, most the nation will eat up whatever the lamestream commies dream up about the story.
He was actually leading in the polls again right before Lehman.
The Lehman collapse was timed just after McCain climbed back ahead of Obama.
According to the poll taken on September 4, 2008, it was perfectly plausible that McCain was going to be 44th President. At that time, Iraq was no longer a major issue and McCain's experience was an asset at that time and voters were not ready to hand the keys to the White House to a man nobody has ever heard of before.
Of course, everything changed a couple weeks later and the GOP brand became radioactive.
There was nothing else he could do. At least he tried. After all, he's not a dictator.
Fair or not, the Late 2000s recession happened under his watch.
Let's get back to the original question: Did the recession start in 2007, or late in 2008?
If you go by the definition for a recession it actually didn’t start until the third quarter of 2008. It takes two successive negative GDP quarters to enter a recession and two successive positive GDP quarters to exit one.
I have heard that 2007 was the start but looking at the quarterly numbers Q4 2007 was positive with q1 2008 neg and Q2 2008 pos.
Link to BEA Chart.
Well from what I remember, the housing sector slowed down quite a bit by '07, but it didn't explode into a full blown financial crisis by late '08.
By the pure definition from my prior post the answer to your question is the third quarter of 2008 is when we were officially in recession.
A very deep recession which usually portends a steep recovery which is hard and stronger than the decline. The problem is that small and mid size businesses saw what was coming, increases in regulations and taxes with Obama and large Dem majorities in the House and Senate.
The increases in GDP in 2009 were largely a product of government spending, aka, a government induced increase in GDP.
As for coming out of recession in a technical sense we have, however this is a real jobless recovery, you could say a job reducing recovery. And it is not getting better!
Employers are refusing to hire since the advent of Obamacare combined with new crushing EPA regulations and the lawlessness of the NLRB. We are in for a bumpy ride until Obama is replaced and the Dems are out of control of the Senate and the economy crushing policies of Obama are reversed.
Will a new, ABO, President be enough to reverse our economic course?
No. Presidents come and Presidents go but Congress hangs on like Herpes. We need to clean house at both ends of Pennsylvania Avenue.
The real culprits...
The Fragmenting of the New Class Elites, or, Downward Mobility
Really? Then why did the press wait until late 2008 to say that a recession was underway?
We should be pointing out that liberalism, in the creation and operation of Fannie Mae and Freddy Mac, started the distortion of markets that created the credit crunch which led to the current recession, and Obama's Keynesian "stimuli" have served to stifle the recovery that would have occurred by now.
There is a record to observe that conservatives warned about where the GSE's were headed, but were out-voted by liberals in Congress.
This argument segues into the fact that Sarbanes-Oxley, Obamacare and Dodd-Frank are liberal "fixes" that do nothing buy exacerbate our economic problems, and all should be un-wound before they can do the same thing to markets that the GSE's did.
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