The Long Hard Slog

GDP went up at a 2.5% annual pace last quarter, which is pretty decent — wasn’t “austerity” supposed to kill us? We’re now back to GDP level we were at … almost four years ago. Yes, it’s time to party like it’s Q4 2007. An important point, jumped out at me, however:

real GDP is finally back to its pre-recession peak, and it’s taken us an historically very long time to get here. The figure (hat tip, BH) shows the number of quarters it has taken in the past for real GDP growth to regain its prior peak before the recession knocked it down (the top date on the x-axis is the quarter that GDP regained the peak; the bottom date is the prior peak). The average is 5.2 quarters…this go round, it took 15. That, my friends, is a long slog.

It was, is and is going to be. We are still too leveraged and our national finances have a biohazard sign on them. We are slowly unravelling the mess we were in — housing prices have fallen, as has debt. Maybe we can see some light. But we’re nowhere near the end; not with so many unemployed.

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  1. richtaylor365

    You beat me to it Retluocc, no austerity going on in this country.

    But data released by the Treasury Department on Friday show that, so far, there haven’t been any spending cuts at all.

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  2. Hal_10000 *

    Yep. I wonder how Krugman will spin this? He’s been tearing out his beard over “austerity” and claiming we were going to have a depression as a result. So he either has to (a) admit there was no austerity; (b) admit austerity doesn’t hurt us or (c) make some more shit up.

    I’m betting on (c).

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  3. AlexInCT

    You are to fucking mean to useful idiots lumping that jackass with them.

    Also, I want to see the revisions on these numbers and what comes next. I would not be surprised if we get an “UNEXPECTED” revision wiping all this stuff out. Like we have been seeing with the employment numbers and other such things for the last 3 years….

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