Why Is the Economic Recovery So Slow?

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)

About Donald Marron 294 Articles

Donald Marron is an economist in the Washington, DC area. He currently speaks, writes, and consults about economic, budget, and financial issues.

From 2002 to early 2009, he served in various senior positions in the White House and Congress including: * Member of the President’s Council of Economic Advisers (CEA) * Acting Director of the Congressional Budget Office (CBO) * Executive Director of Congress’s Joint Economic Committee (JEC)

Before his government service, Donald had a varied career as a professor, consultant, and entrepreneur. In the mid-1990s, he taught economics and finance at the University of Chicago Graduate School of Business. He then spent about a year-and-a-half managing large antitrust cases (e.g., Pepsi vs. Coke) at Charles River Associates in Washington, DC. After that, he took the plunge into the world of new ventures, serving as Chief Financial Officer of a health care software start-up in Austin, TX. After that fascinating experience, he started his career in public service.

Donald received his Ph.D. in Economics from the Massachusetts Institute of Technology and his B.A. in Mathematics a couple miles down the road at Harvard.

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1 Comment on Why Is the Economic Recovery So Slow?

  1. 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?

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