Obama Recovery vs. Previous Recoveries

There are many parts of the world where people who disagree or are dissatisfied with their government are left to suffer in silence.  In America, things are different.  We have the rare gift of being able to hold our leaders accountable for their actions.  If we disagree with a leader, we get to have a say.  We get to place a vote to replace them.

It is a gift to have that voice---we should never take it for granted.

We are 57 days from a pivotal and I would argue, a life changing election.  Americans have the opportunity to hold our president accountable for the job he promised he could do.

Will we?

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Four years ago, President Obama knew the dire economic state of country.  He knew things were a mess, but he ran on the promise that he could help.  He promised the American people that he would restore fiscal discipline to our government, unite our country, strengthen the middle class and get Americans back to work.  He promised that his skills and his leadership would lead us out of the economic crisis.

As we look around at the state of our economy today, it would be hard to argue that he accomplished any of it:

• In one term, $5 trillion dollars was borrowed and spent to stimulate our economy.  It didn't work.

• 1 in 6 Americans, 43 million people are now living in poverty.  The highest levels in 52 years. (New York Times 9/13/2011)

• 50 million Americans--more than any number in history are dependent on Food Stamps. (ABC News 12/2/2011)

• 23 million Americans are looking for stable full-time employment.  During the month of August, for every job that was added to the workforce, 4 individuals just quit looking for work.  

But our president defends it and says that we are on the path to prosperity and recovery.  Wait, this a recovery?  Is it good enough?

President Obama loves to fault Bush for leading our country into this recession, but he forgets that he ran on the promise that he was going to be the leader to guide us out of it.  He hasn't.

According the National Bureau of Economic Research, the U.S. economy has experienced 10 recessions from 1946 to 2006.  Ten recessions with extended periods of decline, job losses and stagnant economic growth.

What is different about this recovery period?

It has had much deeper unemployment for longer periods of time than any other previous recessions.  The website The Federal Reserve Bank of Minneapolis has a fascinating web tool which allows users to compare the ten different recessions and the respective recoveries.

Previous Recoveries vs. Obama's Recovery

UNEMPLOYMENT

• In every other recession: Unemployment levels returned to pre-recession levels within 1.5 to 4 years.  
• Obama's Recovery: After 4 years, the unemployment rate remains above 8% for the 43rd month---nowhere near the pre-recession unemployment level of 4.5%.  
• At this current rate, our country is three years away from returning to pre-recession levels.

ECONOMIC GROWTH

• Reagan's Recovery: In the first 11 quarters of the Reagan led recovery in the 1980's, the economy grew at an average of 6.1% per quarter.
• Under Obama: The economy has grown an average 2.4% per quarter. (Wall Street Journal 4/27/2012)

JOB CREATION

• At this point in Reagan's recovery, 168,000 jobs per month were added to the work force totaling 4.078 million jobs.
• Under Obama: We are at a 30 year-low in new business start-ups. According to a survey from Challenger, Gray and Christmas, "2011 had the lowest start-up rate in 11 years." 
• Anthony Davies, Economic professor at Duquesne University argues that we should be adding 180,000 jobs per month for full recovery.  Obama's recovery has averaged 86,000 per month.

MEDIAN INCOME

• Median income has fallen 7.3 percent since Obama's inauguration---$4,019 per family. (Forbes 9/9/2012)

Obama is credited for the longest and slowest recovery in our country's history.  Long and slow months have passed.  Trillions of dollars have been borrowed and spent yet, our friends and neighbors continue to lose jobs, continue to lose their homes, continue to lose hope.

Obama is asking us to reward him for it?

Image from Politico.com

The president and his allies are now crying foul saying that we should give him a break because this was such a unique recession he inherited.  The problem with that argument?  I agree.

It was a unique recession which is exactly why the recovery will require a unique leader. Obama's dismal results and incessant blaming of his predecessor simply tell me that he is in over his head.  I don't have the need or patience to find out if he can get it right the next time around.

History has shown that there is a better way to recovery.

Mitt's unique training of helping companies, organizations and a state government turn around will benefit our country at this desperate moment.

We must never forget, the gift of Democracy---we get to hold our leaders accountable for their failures.   This time around, how can we afford not to?

Obama's recovery efforts have failed.  I can't think of one reason why we shouldn't hold him accountable for it.

Image from businessweek.com

Go Mitt.