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The recent jobs report demonstrating a .3% decrease in unemployment to 7.8% came as wonderful news both to the Obama campaign and our country as we slowly but surely climb out of the last recession. It's also been hilarious to see the tin foil hatters (like the chickenshit Welch) go nuts on this latest unemployment report as they ironically want nothing but bad news about our economy in order to get Obama out of the White House.

But I think what's important is a paper that came out in 2010 called "After the Fall" by economists Carmen and Vincent Reinhart, which examined the rates of recovery from financial crisis recessions. It helps put our current recovery in the proper context.

From the Bloomberg article back in April:

After a normal recession (which for the average post-World War II experience in the U.S. lasted less than a year), the economy quickly snaps back; within a year or two, it not only recovers lost ground but also returns to trend.

After systemic financial crises, however, economies of the postwar era have needed an average of four and half years just to reach the same per capita gross domestic product they had when the crisis started. We find that, on average, unemployment rates take a similar time frame to hit bottom and housing prices take even longer. With the Great Depression of the 1930s, economies on average needed more than a full decade to regain the initial per capita GDP.

The authors further go on to describe the financial crisis unemployment recovery rates from the 2010 paper:
“After the Fall,” a 2010 paper written by one of the authors of this article and Vincent Reinhart, a former Fed official who is now chief U.S. economist at Morgan Stanley, added evidence that in 10 of 15 severe post-WWII financial crises, unemployment didn’t return to pre-crisis levels even after a decade. It also showed that in seven of the 15 crises there were “double dips” in output.
Unemployment is back under 8%, back to the levels before Obama took office.  This was achieved despite all efforts by the GOP to block any jobs bill Obama proposed.  This happened, again, and again, including a recent bill to help veterans attain a job.

Say what you will about Obama and the Democrats about getting us out of this mess that Bush left us with.  I've said plenty in the past.  To get us where we are now in less than 4 years with all the GOP obstructionism is nothing shy of remarkable.

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Comment Preferences

  •  Tip Jar (3+ / 0-)
    Recommended by:
    Gooserock, sockpuppet, edrie

    Lawrence, KS - From ashes to immortality

    by MisterOpus1 on Tue Oct 09, 2012 at 12:24:28 PM PDT

  •  I Think the Trend is That Recovery Has Been Taking (2+ / 0-)
    Recommended by:
    sockpuppet, MisterOpus1

    longer and longer each time as the economy globalizes and wealth concentrates, if I'm remembering some charts occasionally posted here.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Tue Oct 09, 2012 at 12:26:53 PM PDT

  •  This recession is historic, almost a depression. (2+ / 0-)
    Recommended by:
    sockpuppet, MisterOpus1

    Looking at the % of jobs lost and the length of time we're taking to recover, it may well  be a full decade before we see a full recovery, (if we're ever going back to pre-recession levels of employment). Each cycle of recession also brings more people into the low wage end of the boat.

    Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree. -Martin Luther

    by the fan man on Tue Oct 09, 2012 at 12:34:42 PM PDT

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