Why the Recovery is taking so long

Discussion in 'Current Events' started by rightwinger, Apr 2, 2010.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Why the 'Recovery' Is Taking So Long - Yahoo! News

    The data show that the economy has stopped shrinking and started growing, which is good news no matter what. Economists broadly agree that the recession probably ended last summer, which means things ought to be getting better. Yet jobs are still scarce, the housing bust continues, consumers and businesses remain skittish, and many families are barely muddling through. "It's a recovery, yes," says Nariman Behravesh, chief economist for forecasting firm IHS Global Insight. "But it sure doesn't feel like it."


    Part of the reason for the slow-motion recovery is the depth and nature of the recession that preceded it. A Federal Reserve study of the past three recessions found that employment, income, spending, stock prices, home values, and wealth all fell much more sharply during the 2007-2009 recession than after the downturns of 2001 or 1991. Loan delinquencies and bankruptcies, correspondingly, rose much faster. That leaves a lot of damage to repair.


    The economy also takes longer to recover from recessions these days, like an aging patient who requires more time to bounce back from an injury in his 50s than he did in his 20s. It's not entirely clear why, but technology and globalization probably allow companies to wait longer before they start hiring American workers after a spate of downsizing, which in turns dampens confidence and spending. Here's how long it took for the unemployment rate to peak and start declining after the recessions that ended in the following years:
     
  2. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    Couldnt possibly because of the administrations poor policies, over taxation, and massive government spending could it? Nah!

    Funny, you've been saying that the recovery has been going on for a while now. Youd think by now there would be some evidence for it.

    The economy wont get better until you stop trying to punish the people who work in it and stop irresponsible government. Simple fact. It be nice if we could waive a magic wand and fix everything. But there is no point deluding ourselves. It's going to be a rough few years at least.
     
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  3. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    The mediocre recovery which is (feebly) underway is in spite of horrible government policies and programs. American private industry is generally optimistic, and seeks ways to succeed despite obstacles. This administration has made things much more difficult than they need to be. We also have the piling up of decades of poor government; the snowballing effect is probably a permanent condition unless we descope the size of government. If we don't, growth will remain anemic; and unemployment high.
     
  4. Truthmatters
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    Could someone please go get me an example of a recession this deep that was speeded to recovery by doing nothing?
     
  5. Truthmatters
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  6. Gunny
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    Gunny Gold Member

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    Two perfect examples of why friends don't let friends vote Dem.:cuckoo:
     
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  7. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Nothing would have been better than wasting $800B on the Porkulus, and another $400B on the Omnibus bill, raising taxes, and dumping another enormous entitlement onto a struggling economy.
     
  8. Truthmatters
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    Long Depression - Wikipedia, the free encyclopedia


    In the United States, the Long Depression is considered to be primarily a monetary depression. Prices fell by 25%, a rather severe deflation, while production is thought to have declined by 5%.[6] The main sector of the economy in decline was railroading, as well as building construction and manufacturing that supported the construction. From 1867 to the depression's beginning in 1873, the miles of railroad in operation had grown by 50% and then plateaued. Industries outside of railroading, particularly agriculture, continued to do well during the depression. But railroading alone accounted for 15–20% of capital investment in the economy, prior to the railroading crisis and the Panic of 1873.[6]

    A few indices of economic activity measure the severity of contraction. A general index of manufacturing production compiled by economist Edwin Frickey in 1947 showed a decline of 10% from 1872 to 1876. Durable goods declined 30% and iron and steel production declined by 45%. An index of building construction by Clarence Long declined 50% and remained at this depressed level for the rest of the decade.[6]
     
  9. Xenophon
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    Xenophon Gone and forgotten

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    Every time things start to improve Barry gets a new idea and gives it another gut shot.

    Barrycare lead to a string of layoffs and more business uncertaincy.

    WTG you freaken moron.
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Note to Truthmattersnotbutlotsoflinksdo:

    I call shenanigans.

    If you can't add any comment explaining the relevance of what you are posting to the discussion, it's just botting.
     

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