Reagan Recovery vs. Obama Recovery in Pictures

Conn Carroll / October 13, 2010

According to The National Bureau of Economic Research, the most recent recession began in December 2007, lasted 18 months, and ended in June 2009. The recession which most closely resembles the most recent one began in July 1981, lasted 16 months, and ended in November 1982. No two recessions are exactly the same. No two recoveries are exactly the same. But as two-time Super Bowl champion coach Bill Parcells still liked to say: “You are what your record says you are.” Heritage Foundation Senior Fellow J.D. Foster read us the score:

At this stage of the Reagan recovery from the last deep recession in the early 1980s, the economy had created almost 4 million jobs, or 6 million jobs when adjusting for the size of the labor force. In contrast, under Obama the economy has lost nearly a half million jobs since the recovery began; the growth rate remains stuck around 1 percent; and the economy is sufficiently weak that the Federal Reserve is about to embark on yet another round of quantitative easing to fend off deflation.

As the chart to the right shows, 16 months into the Reagan Recovery the nation’s unemployment had already fallen a full three points. By contrast, 16 months into the Obama Recovery and the nation’s unemployment rate is actually .1 points higher. Why was the Reagan Recovery so strong and why is the Obama Recovery so weak? (more…)