Economic recovery from a recession: Obama versus Bush:
Recovery at Last?, by Paul Krugman, Commentary, NY Times: Last week we got an actually good employment report... We’re still nowhere near full employment, but getting there no longer seems like an impossible dream.
And there are some important lessons from this belated good news..., it does put the lie to some of the nonsense you hear about why the economy has lagged.
Let’s talk first about reasons not to celebrate.
Things are finally looking better for American workers, but this improvement comes after years of suffering..., it has been a terrible seven years... Why was it so bad?
You often hear claims, sometimes from pundits who should know better, that nobody predicted a sluggish recovery, and that this proves that mainstream macroeconomics is all wrong. The truth is that many economists, myself included, predicted a slow recovery from the very beginning. Why? ...
We could have had a much faster recovery if the U.S. government had ramped up public investment and put more money in the hands of families likely to spend it. But the Obama stimulus was much too small and short-lived..., and since 2010 what we have actually seen, thanks to scorched-earth Republican opposition on all fronts, are unprecedented cutbacks in government spending, especially investment, and in government employment.
O.K., at this point I’m sure many readers are thinking that they’ve been hearing a very different story about what went wrong — the conservative story that attributes the sluggish recovery to the ... Obama administration. ...
Which is where the new job numbers come in. At this point we have enough data points to compare the job recovery under President Obama with the job recovery under former President George W. Bush, who also presided over a postmodern recession... And by any measure you might choose ... the Obama recovery has been stronger and faster. Oh, and its pace has picked up over the past year, as health reform has gone fully into effect.
Just to be clear, I’m not calling the Obama-era economy a success story. We needed faster job growth ... than under Mr. Bush, because the recession was deeper, and unemployment stayed far too high for far too long. But we can now say with confidence that the recovery’s weakness had nothing to do with Mr. Obama’s (falsely) alleged anti-business slant. What it reflected, instead, was the damage done by government paralysis — paralysis that has, alas, richly rewarded the very politicians who caused it.