What a recovery

GDPC1, 1947 to 2013 with recession bars

Most of the happy news about GDP looks at quarterly changes, but a broader perspective reveals a different story. The chart above shows real1 GDP from January, 1947 to the present. I’ve calculated the average GDP for the period of economic expansion in the table below. The present period of expansion is the second weakest on record, surpassing only the early 1980s recovery, which itself was hampered by relatively high energy prices after the 1979 energy crisis, as well as record high interest rates under then Federal Reserve Chairman, Paul Volker.

So what is the cause of the current anaemic economic performance? Of course nobody is totally sure, but the major difference between this and other periods of economic expansion is, of course, the US Government’s interference in the markets and excessively high deficits.

This will not end well.



GDPC1, real GDP, average during period of economic expansion, 1947 to 2013

GDPC1, real GDP, average during period of economic expansion, 1947 to 2013


1 Inflation adjusted.

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