Why Is the Economic Recovery So Slow?

By Nov 18, 2012, 1:58 PM Author's Blog  

The U.S. economy has recovered slowly since the official end of the Great Recession in 2009. Mark Lasky and Charles Whalen of the Congressional Budget Office just released a study asking why. Their answer: two-thirds of the slowness (relative to past recoveries) reflects weak growth in the economy’s potential. The potential labor force, capital stock, and productivity are all growing less rapidly than they did following past recessions. The other third reflects cyclical weakness, particularly in government, housing, and consumer spending.

CBO’s Maureen Costantino and Jonathan Schwabish turned those results into a nifty infographic (click to make larger):

(click to enlarge)

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One Comment

  1. John B. Egan says:

    The recovery is so slow because it is a worldwide “Great Recession”….Unlike the Tech Bubble and Savings and Loans generated recessions, which really only impacted the US and not the rest of the world, or the 2008 Brazilian recession which only affected that area of South America, this financial collapse was more akin to the Great Depression, which was worldwide…And it took from 1929 to 1941 to correct. However, it would have been considerably less intense had the Republican House focused on the promised jobs they would generate and not on undermining the Democrats. Did they ever actually produce one job?