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Chairman Dave Camp

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Welcome to the Obama Recovery – Four Years On

Worst Recovery Ever Continues to Limp Along, Stranding Millions of Workers and Families

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Washington, Jul 3, 2013 | comments

Welcome to the Recovery” said then-Treasury Secretary Tim Geithner in a New York Times op-ed published in August 2010.  In Geithner’s view back then, credit for the “recovery” rested squarely with the Obama Administration’s stimulus and related economic policies: 

“The economic rescue package that President Obama put in place was essential to turning the economy around. The combined effect of government actions taken over the past two years — the stimulus package, the stress tests and recapitalization of the banks, the restructuring of the American car industry and the many steps taken by the Federal Reserve — were extremely effective in stopping the freefall and restarting the economy.”

Fast forward to July 2013.  It’s now a full four years after the Obama Recovery officially started in June 2009, and almost three years after Geithner penned his now infamous op-ed.  Looking back, what sort of recovery has it been?  As the charts below reflect, it’s the weakest ever.  So have the Obama Administration’s actions been “extremely effective in…restarting the economy” as former Secretary Geithner suggested?  You be the judge.
 
Worst Recovery Ever: GDP


Real GDP Relative to the End of Recession


Worst Recovery Ever: Jobs

Percent Job Losses in Post-World War II Recessions

Source: Calculated Risk Blog, Percent Job Losses During Recessions.

Worst Recovery Ever: Long-Term Unemployed


Unemployed by Duration, as a Percent of the Civilian Labor Force

Source: Calculated Risk Blog, Percent Job Losses During Recessions.
 
Worst Recovery Ever: Decline in Labor Force Participation


Change in the Labor Force Participation Rate during the First 48 Months of Recovery from Recessions since 1970*

Source: U.S. Department of Labor, Bureau of Labor Statistics.
*2007-09 reflects first 47 months of recovery; 48th month will be released July 5, 2013.

Worst Recovery Ever: Rise in Dropouts from the Labor Force

 
Change in Number of Adults Not in the Labor Force during the First 48 Months of Recovery from Recessions since 1970*

Source: U.S. Department of Labor, Bureau of Labor Statistics.
*2007-09 reflects first 47 months of recovery; 48th month will be released July 5, 2013.
 



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