The Two Year Anniversary of the Non-Recovery

This month marks the two-year anniversary of the end of recession and start of recovery. But it’s a recovery in name only, so weak as to be nonexistent. And it has been weak from the start. Real GDP growth has averaged only 2.8 percent per year compared with 7 percent after last deep recession in 1981-82, as shown in the following chart. And the unemployment rate is still over 9 percent.
Today the Joint Economic Committee of the Congress held a hearing on whether a credible plan to reduce government spending growth would bolster or hinder the recovery.

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