Bush’s 2007 recession ended in 2009
According to an article from Reuters on September 20, 2010, the National Bureau of Economic Research (NBER) believed the recession that started in 2007 ended in June 2009—aka the so-called Bush’s recession. NBER also said any downturn from now on would be result of a new recession and not the continuation of the 2007 recession.
Obama’s stimulus package was approved in mid-February 2009. It took several months for the money to flow downward and to have any effects on the economy. So it was safe to assume that the stimulus package had nothing to do with the end of the Bush’s recession. As a matter of fact, from an article in the Investor Business Daily, only 15% of the stimulus money left the door by the end of the 2007 recession.
The whole stimulus package was $814 billion and Obama often touted that it created 3 million jobs. Assume that he is right, each job creation cost tax payers $271,000—this is how effective the government can spend tax money to create jobs!
If you add $15 trillion deficit spending on top of that, then it costs tax payers over $5 million for each jobs that Obama claimed he created in his economy.
And yet, after 3 years, we are still at 8.3% unemployment rate—the real unemployment rate U6 is at 15%. And, more than 12 million people are still unemployed with millions more are not even counted since they gave up search.
Bottom line: Government can’t create jobs effectively. Private industry does!
In 2006, ahead of Bush’s recession, economist Gary Shilling fore-warned the market of subprime loan problem. In 2007, he predicted the housing market would sink the economy.
Now, Gary Shilling believes a new recession has begun in the U.S. The recession started in the second quarter due to a drop in the consumer spending because of a week job market. He believes policies that normally help to revive the economy are absent.
This, ladies and gentlemen, is officially the Obama’s recession. And he hasn’t done much to get us out of it. Blaming Bush and Congress are his answers. Golfing and campaigning have taken much of his time. Raising taxes is his campaign trick to make the 99% group believe he is for them.