The slowest US recovery from a recession in employment

The Worst Recovery Since World War II

Gary Becker

The latest jobs report on Friday confirmed that this is by far the slowest US recovery from a recession in employment as well as income since the end of World War II. Four years after the start of the recession in 2008, American unemployment is still above 8% compared to lower than 5% in 2007. The severity of the financial crisis implies that this would be a steep recession, but a continuation of the recession for 4 years suggests that other factors have also been in play.

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Political uncertainty is a retardant to economic recovery, but I would be inclined to place greater emphasis on weakness in demand in consequence of the sharp drop, triggered by the financial crash of September 2008, in household wealth and employment prospects.

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