Economist Claims U.S. Economic Recovery Best Yet While the Dow and the S&P 500 closed out 2013 at a record high, last week's jobs numbers seem to indicate a still-sluggish recovery, and a new report from economists Paul Volcker and Richard Ravitch shows that a number of states continue to face staggering budget problems.
While most economists are still arguing about why our economy still has such a long way to go, Kenneth Rogoff, professor of economics and public policy at Harvard University and former chief economist of the International Monetary Fund, says that when comparing past recessions and crashes, the U.S. economy is performing fairly typically.
"If you compare the U.S. recovery to past recession we've had after World War II, we are not doing well—and I'd hardly say that we're doing well overall," Rogoff tells The Takeaway. "But, if you compare it to similar recessions after deep financial crises in the United States or around the world, then by that metric we're not doing so badly."
Rogoff says that even though the recovery has not been great, the U.S. economy is performing in a way that is to be expected after a mass financial crisis.
"It is typical, and we're not doing worse than average for what we were hit with," he says.
Rogoff adds that while U.S. policies designed to stimulate the economy after the initial crash have had a meaningful impact, more measures should have been taken, like additional infrastructure spending and a bigger push to help sub-prime homeowners with underwater mortgages.
"In the middle of a crisis like this, the government has to act very aggressively," he says. "In the thick of it, I certainly wouldn't give our policies an A+, but it could have been a lot worse and you can see that when you compare the rest of the world."
It's like "The Takeaway" never bothers to do it's homework. Kenneth Rogoff's studies are the laughing stock of the Academic world when their "recommendations" they touted were found to be based on fundamental spreadsheet errors when reviewed by graduate students. Rogoff's dismisses "polemics" as he calls it, giving the impression that his viewpoints are attacked by a bunch of hacks, when actually they have been challenged by two Noble Prize winning economists. If you want to see an example of Rogoff's austerity reforms, take a look at Greece. It's worked real well for them.
Larry Fisher from Brooklyn, N.Y.
We are all being trained to work twice as much for half the pay...That is is me picture of a recovery!
The economic crisis may be over but the damage for my middle aged generation will never, ever recover.
The recovery is only on paper and for a future generation (maybe). Nobody I know in New York feels like they have recovered from their pre-recession days. My artistic community of working Writers, Musicians, Actors,Movie Editors are making half as much money and join me at second jobs in places like Trader Joe's.
Happy to do it. Just don't kill me anymore.
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