Worst Western post-financial crash recovery in last four decades?

posted at 1:56 pm on August 1, 2012 by Ed Morrissey

When pressed to explain why the US recovery in the last three years has fizzled in comparison to other post-WWII US recoveries, especially in job creation, Barack Obama usually says that the Great Recession was such an unusual event that it cannot be directly compared to any other American recovery.  In the 2008 crash, unlike other cyclical recessions, financial institutions suffered extensive damage and a large drop in assets, making recovery more difficult.  While that may be a singular event for the US, it’s not the first time that kind of crash has occurred in Western nations.  James Pethokoukis and JP Morgan compare the Obama recovery to those of other nations after similar financial-sector crashes, and find that our recovery has performed worse than all of them — even Japan’s notorious “lost decade”:

In a new research note, JPMorgan points out that since 1970, Japan, Finland and Sweden have all gone through what the U.S. is currently going through. And all three of them had recoveries stronger than America’s. The above chart compares the economic recovery — as measured by real GDP per capita — of each nation at different points after the trough of their recessions. And the U.S. is in dead last after 12 quarters from the bottom.

You should particularly note how the U.S. is doing versus Japan, another large, advanced economy. As JPMorgan economist Michael Feroli notes:

The poster child for slow growth coming out of a debt-fuelled financial crisis has to be Japan, which ever since the early 1990s has had trouble getting a head of steam. The recession which kicked off Japan’s “lost decade” lasted from 1991 to 1993. Including the recovery experience from that recession is sobering: we are currently faring worse than Japan at the same point in their lost decade.

Be sure to check the chart at AEI that Jim provides; it doesn’t add anything to the analysis, but it does show how far off the mark we currently are from even Japan.

With that in mind, take a look at the new ad for Mitt Romney that is now running in Ohio, as Obama makes a campaign stop today in the state, reminding Buckeye State voters how well Obama’s plan has worked:

Time for a change?  If we don’t want to keep doing worse than Japan’s “lost decade,” yes.


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Oblamo, Hard at work.

acyl72 on August 1, 2012 at 1:59 PM

And bho is out today giving his old tired ‘fair share, tax the rich’ campaigning!

No way in he!! we will ever get out of this mess with bho in charge!
L

letget on August 1, 2012 at 2:02 PM

Can’t shake the feeling that President Obama and his fellow economic “advisors”/arsonists would high five each other over this. After all, you can’t have a socialist utopia until everything is finally fair and everyone is equally poor and miserable.

JeremiahJohnson on August 1, 2012 at 2:03 PM

Isn’t it about time for some golf?

OhEssYouCowboys on August 1, 2012 at 2:04 PM

Worst is a word we can use to describe anything and everything connected to this dip$hit.

msupertas on August 1, 2012 at 2:04 PM

Can’t shake the feeling that President Obama and his fellow economic “advisors”/arsonists would high five each other over this. After all, you can’t have a socialist utopia until everything is finally fair and everyone is equally poor and miserable.

JeremiahJohnson on August 1, 2012 at 2:03 PM

“We tried our plan — and it worked.”

Bitter Clinger on August 1, 2012 at 2:07 PM

Recovery?

What recovery?

Rebar on August 1, 2012 at 2:10 PM

If Obama says that his plan worked, it is an admission that he wants to destroy the country. It is an excellent ad that will have libs wetting their panties screaming that the Blues music is a dog whistle to racists instead of representing the utter despair Obama has wrought.

Southernblogger on August 1, 2012 at 2:11 PM

“THE STIMULUS WORKED.”

Good Lt on August 1, 2012 at 2:12 PM

…the people who report what’s going on…the MSM… have become dumber than a box of rocks…their brains and reporting have turned to feces…and their eyes have long ago been plucked out.

KOOLAID2 on August 1, 2012 at 2:12 PM

I’m so waiting for the day when this fu*%ing Communist actually says:

This, uh, this economy is, uh, well, it’s, uh, not doing, uh, according to my, uh, 5 Year, uh, Plan, because of the, uh, wreckers that are, uh, still in our, uh, society. But, uh, they will, uh, they will be, uh, dealt with.

Wrecking (Russian: вредительство or vreditel’stvo, lit. “inflicting damage”, “harming”), was a crime specified in the criminal code of the Soviet Union in the Stalin era. It is often translated as “sabotage”; however, “wrecking”, “diversionist acts”, and “counter-revolutionary sabotage” were distinct sub-articles of Article 58 (RSFSR Penal Code) (58-7, 58-9, and 58-14 respectively), and the meaning of “wrecking” is closer to “undermining”.

These three categories are distinguished in the following way.
Diversions were acts of immediate infliction of physical damage on state and cooperative property.
Wrecking was deliberate acts aimed against normal functioning of state and cooperative organisations, e.g., giving deliberately wrong commands.
Sabotage was non-execution or careless execution of one’s duties.

As applied in practice, “wrecking” and “sabotage” could refer to any actions which could be broadly construed to negatively affect the economy in some way, including failing to meet economic targets, causing poor morale among subordinates, lack of effort, or alleged or real incompetence. Thus, it referred to economic or industrial sabotage only in the very broadest sense. Many who were charged were merely scapegoats. In many cases, even those who were not engaged in industrial activity (including scientists) were charged with wrecking. Many of the victims of the Great Purge were charged with wrecking.

http://en.wikipedia.org/wiki/Wrecking_(Soviet_crime)

OhEssYouCowboys on August 1, 2012 at 2:14 PM

Just wait. Mitt will be elected, he’ll take the regulatory shackles off small business, and liberals will scream it’s the delayed effect of Obama.

Meric1837 on August 1, 2012 at 2:15 PM

Wasn’t the early 1980′s recession worse than this one? I know everyone calls this the Great Recession, but the one 30 years ago had unemployment over 10% along with inflation in the 10-15%. This “Great Recession” may seem longer, but technically this recession was over in 2009.

mdenis39 on August 1, 2012 at 2:15 PM

FIRE this ad agency! This is an infomerciak for Dear Liar. The sheeple are not engaged enough to read.
Get a clue and use words. The only words here are Obama propaganda. I bet half of the listeners never take time to read the message. They are to lazy or disengaged.
Worse than a waste of money this probably HELPS OBAMA with just the crowd its trying to persuade!

ConcealedKerry on August 1, 2012 at 2:16 PM

Barack Obama usually says that the Great Recession was such an unusual event that it cannot be directly compared to any other American recovery.

Yes it can! NONE of those recoveries had Barry Obama at the helm!

GarandFan on August 1, 2012 at 2:17 PM

Ok, but I’m going to hark on this until the cows come home: while it’s indisputable that the economy is a bit lethargic, among independent voters there is argue room with regards to 1) how much O is to blame for the economy, and 2) whether Romney would be a plus or minus on the economy.
Why? Some things the opposition and independents can latch onto: ** it’s clear that the economy is not in freefall. ** “Blame Bush” works for some. ** Some maintain, and many are in fact swayed by, the contention that the economy’s ills are structural and global, beyond the scope of O’s purview.
Wake up i say! STOP is the obvious takeway. Stop making it primarily, or even mostly, about the economy, before it’s too late. It is about the soul of this country, about whether we as a country maintain some semblance of conservative principle or continue headlong into a leftist abyss, it doesn’t matter whether the unemployment rate in September is 8.1% or 8.273%. No. Instead, concentrate and hit hard on the issue of the out of control govt that few but the most liberal want. And concentrate on the firebrand issues like gay militancy, runaway illegal immigration, and Obamacare!
IMPORTANT, there are many independents that take our position on these firebrand issues, but also don’t really think that Romney is the savior for the economy — and you need to hit these people hard on the firebrand issues to get above the noise and Obama-flak or they will not think it matters enough to vote against Obama.
A sidenote: on the gay issue, though some polls show bare majorities of support for gay marriage, the intensity of opposition (which is where the voters are) is going to be stacked against gay marriage. And if it is a question of whether people support extreme gay militancy, the polls will show strong opposition.

anotherJoe on August 1, 2012 at 2:18 PM

If we come out of this with a lost decade we’re lucky. We may be looking at a lost generation if the choomer gets re-elected.

RedInMD on August 1, 2012 at 2:18 PM

Most transparent president ever, the goon.

Schadenfreude on August 1, 2012 at 2:20 PM

Look on the bright side, it’s the best depression ever!

zmdavid on August 1, 2012 at 2:22 PM

The “Community Organizer Recovery”.

Forward.

MichaelGabriel on August 1, 2012 at 2:23 PM

More joy from the Fed. News flash: The economy stinks and it is getting worse.

http://finance.yahoo.com/news/fed-says-us-economy-slowed-181508486.html

Philly on August 1, 2012 at 2:23 PM

How could this be?

Back in ’08 we were told that Obama’s staggering intellect eclipses the best of any Mensa chapter and yet he was unable to fix the economy?

Can we take action against the DNC propaganda arm for false advertising?

Chip on August 1, 2012 at 2:24 PM

What do the GDP numbers look like with government spending removed? I’m pretty sure it would show a depression.

zmdavid on August 1, 2012 at 2:27 PM

OhEssYouCowboys on August 1, 2012 at 2:14 PM

Don’t forget the other type of ‘wrecker’.

The folks who light false beacons on the shoreline and lure ships to their doom… then loot the wreckage and kill any survivors.

Now we have a new variant: the malevolent hand on the tiller, with his minions waiting to loot the remains, and enslave any survivors.

CPT. Charles on August 1, 2012 at 2:27 PM

OhEssYouCowboys on August 1, 2012 at 2:14 PM

Don’t forget the other type of ‘wrecker’.

The folks who light false beacons on the shoreline and lure ships to their doom… then loot the wreckage and kill any survivors.

Now we have a new variant: the malevolent hand on the tiller, with his minions waiting to loot the remains, and enslave any survivors.

CPT. Charles on August 1, 2012 at 2:27 PM

If El Presidente Downgrade is able to buy enough votes with your money, that will be the “progression” of events.

This was expressed by Alexander Tytler many moons ago:

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury.

Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage.

That is the National Socialist Left’s idea of “Progress”.

Chip on August 1, 2012 at 2:35 PM

Western post-financial crash recovery in last four decades?

Don’t forget…

… this is all by design.

I took thought, planning, and implementation…

… When you implement regulations, laws, and excutive orders that have the result of crippling the economy, why is anyone surprised?

Obowma, the Democrats, and the Left in general own this…

… Why not just call Obowma on the success of his policies?

Seven Percent Solution on August 1, 2012 at 2:43 PM

I like how the Deomcrats question Romney’s business and foreign relations skills and not reflect back on what Obama started out with.

Oh, the irony.

timberline on August 1, 2012 at 2:48 PM

A few things to remember…

Obama became part of the minority party in our Federal Government on January 3, 2005.

And Obama became part of the majority party in our Federal Government on January 3, 2007.

Senators Obama, Biden, Clinton, Reid, etc., along with new Speaker of the House Nancy Pelosi, were responsible for the explosion of spending in the FY 2008 and FY 2009 budgets, as well as for passing TARP. Senator Obama, despite his short tenure in the Senate, came in the top 3 of Top Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008 (exceeded only by Chris Dodd and John Kerry, and if you consider that Obama was only campaigning for Federal office 2004-2008, Obama’s per year receipts of Fannie Mae and Freddie Mac Campaign Contributions easily tops the list).

The Republicans tried for years to rein in Fannie & Freddie, while the Demonrats obstructed, said that there were not any “safety and soundness” issues, and falsely accused the Republicans of racism. (shocker!)

Watch Maxine Waters and other Democrats accuse Republicans of racism as the Republicans tried to increase regulation of Fannie Mae & Freddie Mac, and Democrats covered up the corruption.

It was the Democrats who drove the economy into the ditch, including Senator Obama who was a Senator in the minority in 2005-6, a Senator in the majority 2007-8, and a top recipient of Fannie Mae and Freddie Mac campaign contributions.

It wasn’t the Bush Tax Cuts that tanked the economy. It was the Democrats’ reckless, irresponsible, and likely criminal handling of Fannie/Freddie the created the sub-prime mortgage crisis that tanked the economy. And his crony capitalist Stimulus made things WORSE, not better.

And let’s not forget that in early January 2009, Obama specifically asked President Bush to request the second half of the TARP money. Bush got all of the blame, but Obama got half of the TARP money.

ITguy on August 1, 2012 at 2:52 PM

“We tried our plan — and it worked.”

Bitter Clinger on August 1, 2012 at 2:07 PM

It’s odd that Romney doesn’t pin Obama by asking him to offer details of the plan that worked, or this classified secret along with his BC, school transcripts, and how he swung the moola to get the best education money could buy.

timberline on August 1, 2012 at 2:56 PM

Obama is in the top three worst things to happen to America.

tom daschle concerned on August 1, 2012 at 3:14 PM

ITguy on August 1, 2012 at 2:52 PM

+7%…!

Seven Percent Solution on August 1, 2012 at 3:28 PM

I wonder why nobody ever tells that the DEMOCRATS have been the ones to systematically destroy this country since the early 20′s.
First Woodrow Wilson,died trying to get the US to join the league of Nations,started the The Federal Reserve, FDR took us off the Gold Standard then from 1933 to 2010 77 years the DEMS have controlled both houses for 51 of those years, they have entacted legislation and signed treaties that have reached our current situation.

They rave about Bill Clinton and how well he ran the country, 6 out of those 8 years he had Republicans in both houses, while he still had majority he signed the great NAFTA treaty, that worked out well.

I sure hope we get some Repubs. in both houses with some cajones because they sure have been weak kneeded, liver bellies representing us, they just roll over and play dead instead of returning fire,

concernedsenior on August 1, 2012 at 3:38 PM

That jug-eared, communist, pinocchio, doesn’t have the first clue. Needs to go back to community organizing… whatever the hell that is.

ultracon on August 1, 2012 at 3:42 PM

Can’t shake the feeling that President Obama and his fellow economic “advisors”/arsonists would high five each other over this. After all, you can’t have a socialist utopia until everything is finally fair and everyone is equally poor and miserable.

JeremiahJohnson on August 1, 2012 at 2:03 PM

Comment of the Day™, with an assist to Bitter Clinger for remembering the “it worked” li(n)e.

Steve Eggleston on August 1, 2012 at 4:09 PM

Wasn’t the early 1980′s recession worse than this one? I know everyone calls this the Great Recession, but the one 30 years ago had unemployment over 10% along with inflation in the 10-15%. This “Great Recession” may seem longer, but technically this recession was over in 2009.

mdenis39 on August 1, 2012 at 2:15 PM

Depends on the measure, really. The 1981-1982 recession did not have as large a drop in real GDP as this one, but did have a steeper annualized drop, just like the 1980 recession that preceeded it. It also featured higher unemployment and inflation thanks to the Carter years’ stagflation and the recession that ended that Presidency.

In fact, on an annualized basis, the two recessions in the 1980s, the 1970 recession and the 1957-1958 recession had steeper drops in GDP than the “Great Recession”; it’s just that they turned around a lot faster.

Steve Eggleston on August 1, 2012 at 4:22 PM

If this is a legal, necessary step to re-elect the president who saved the auto industry, reformed health care, is winding down two stupidly run wars, and kept the economy from sliding into a depression, I’ll kee the change, thank you His pragmatism gives me hope for this November.
 
urban elitist on February 7, 2012 at 1:35 PM

rogerb on August 1, 2012 at 4:45 PM

Of course the recovery never happened, anyone remember this:

Obama’s economic savior savaged as Keating lets rip:

In a speech to a closed gathering at the Lowy Institute in Sydney on Thursday, Paul Keating gave a starkly different account of Geithner’s record in handling the Asian crisis: “Tim Geithner was the Treasury line officer who wrote the IMF [International Monetary Fund] program for Indonesia in 1997-98, which was to apply current account solutions to a capital account crisis.”

In other words, Geithner fundamentally misdiagnosed the problem. And his misdiagnosis led to a dreadfully wrong prescription.

LifeTrek on August 1, 2012 at 5:37 PM

Obama continues his ‘unprecedented’ administration.

Heh.

socalcon on August 1, 2012 at 6:38 PM

Worst Western post-financial crash recovery in last four decades?

As far as the obamanation is concerned, things are going (more or less) according to plan…

Gohawgs on August 1, 2012 at 7:58 PM

Headline should read, Boy King racks up another first.

Kissmygrits on August 1, 2012 at 8:25 PM

We don’t know for sure that real unemployment isn’t higher than 10%. The Obummer administration is faking the numbers. Shadowstats and other sources have reported that they calculate the unemployment rate has been anywhere between 15% and 22%. If that’s true then we are in a depression, not a recession. I’m in late middle age and I have never before known or known of so many people out of work as now.

sherrimae on August 1, 2012 at 9:07 PM

Uh, 2nd post where videos don’t work – have you been hacked?

MN J on August 1, 2012 at 11:57 PM

By definition “recovery” is a good thing. Ain’t nothing good about whatever this is. Over 42 months into the Obama disaster and his lies aren’t even creative anymore. Just recycled platitudes and the same old blame game. For the love of all that is holy, people, what will it take??

Extrafishy on August 2, 2012 at 7:31 AM