I’ve covered this pretty thoroughly in the past (see here), but this great infographic from the Washington Post explains in 2 minutes why this doesn’t feel like a recovery and why it will likely feel like a recession for much longer than most would like to admit:
“The nation’s economic woes boil down to this. Compared with a healthy economy, about 7 million working-age people and 5 percent of the nation’s industrial capacity are sitting idle, not producing what they could. The economy is growing again, but at a rate — less than 2 percent in recent months — that’s too slow to keep up with a population that keeps increasing and workers who keep getting more efficient.
This is the output gap, the divide between the amount the United States can produce and what it is actually producing. The gap, currently $900 billion, explains why we feel so miserable more than a year into what is technically classified as an economic recovery.”
See here for the full graphic.
Source: Washington Post