Bush did not inherit one of the shortest recessions in history. The Q1, Q2, and Q3 of 2001 had negative GDP growth. According to the NBER, the typical recession has 2 to 3 quarters of Negative GDP growth. They (the NBER) claims that the duration of this past recession is just a little shorter, than the average post-war recession.
IMO,the biggest reason that the recession was relatively mild, is that both the Federal Reserve and the Administration quickly took actions to stimulate the economy (by reducing interest rates and reducing taxes). The timing of the tax break, and rate cuts, were enough to stimulate the economy enough to overcome even the effect of 9-11-01 and a Market Crash had on the economy.
Yes Federal Revenue has not recovered, the tax cut did reduced Federal Revenue. And it'll probably take a long time before the typical investor/taxpayer erases the losses they carried over from 2000/2001 (and 2002).
re:"Bush inherited one of the shortest and mildest recession in history...."
And yes, jobs haven't recovered yet. Unlike previous recessions, this recession was due in large part to a massive market correction - a crash. Trillions of dollars in equity were lost due to the end of the speculative stock bubble - this probably had major effect on job creation.
You seem to forget, that just three years ago, people were talking up the "New Economy" - and the end of the business cycle. |
