Economic Recovery: “Never reason from the previous peak”

Mark Perry asserts, inter alia, that:

2. While the US economy was able to achieve a complete recovery from the Great Recession (in terms of real GDP), and is now producing $843 billion more output than in Q4 2007, the new record level of economic output in the US is being produced with two million fewer workers than in the last quarter of 2007 (see red line in chart).

4. The chart above also illustrates the fact that the US economy is in another “jobless recovery,” with a full economic recovery when measured by real output, but with a weak recovery when measured by employment levels, with a stubbornly high jobless rate and sluggish job growth.

Read the whole article here.

About the Author

Marcus Nunes
João Marcus Marinho Nunes is a partner of Phynance Estratégias Quantitativas e Investimentos and a professor of Economics at Fundação Getúlio Vargas in São Paulo, Brazil. He also blogs here: http://thefaintofheart.wordpress.com/

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