If you look at the US GDP growth since 1947, you’ll notice that the recovery magnitude always matched the recession magnitude except for the last one.
I’ve annotated the graph to show the recessions and recoveries in like color ellipses and the pair to the right represents our last recovery. The zero GDP growth line is shown in clack and notice that with the exception of the last “recovery”, the magnitude of the recovery has equalled or exceeded the magnitude of the recession.
Up until this last recession/recovery cycle, it used to all make sense. Recessions are part of the economic cycle and the Free Market would do what it always does, bounce back in like magnitude.
Except for the Obama years…..
Notice this last recession was severe but the recover was nothing but blah. The “recovery” has averaged around a 2% GDP growth rate and 2016 came in at a pitiful 1.6%.
From the WSJ article:
Speaking of weak, growth for all of 2016 clocked in at 1.6%, the slowest since 2011 and down from 2.6% in 2015. That marks the 11th consecutive year that GDP growth failed to reach 3%, the longest period since the Bureau of Economic Analysis began reporting the figure. The fourth quarter also rings out the Obama era with an average annual growth rate of 1.8%, which is right down there with George W. Bush for the lowest among modern Presidents.
Mr. Obama inherited a deep recession, but that makes the 2.1% growth average since the recession ended all the more dismaying. You have to work hard to suppress growth after a deep downturn, and Mr. Obama did that by putting income redistribution ahead of growth as a policy priority. He achieved the remarkable feat of slower growth and more inequality.
Massive regulation and other anti-business policies of Obama (and yes, George W. Bush too) handcuffed the US economy and that means there is a ton of potential energy in the economy just waiting to be released once the US government reverses course. Which is exactly what will happen in the next 2 years with a new style Republican control of the Executive and Legislative branches of government.