Downturn officially ended simply means that negati
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Posted On: 06/21/2019 9:10:20 AM
Downturn officially ended simply means that negative GDP ended, the damage had been done but the consequences had to play out.
The WSJ piece overlooks that the Great Recession was different in kind from the cyclical recessions.
This was a financial crisis recession not unlike the one that crippled Japan for more than a decade.
United States[edit]
Main article: List of recessions in the United States
According to economists, since 1854, the U.S. has encountered 32 cycles of expansions and contractions, with an average of 17 months of contraction and 38 months of expansion.[8] However, since 1980 there have been only eight periods of negative economic growth over one fiscal quarter or more,[59] and four periods considered recessions:
July 1981 – November 1982: 15 months
July 1990 – March 1991: 8 months
March 2001 – November 2001: 8 months
December 2007 – June 2009: 18 months[60][61]
For the past three recessions, the NBER decision has approximately conformed with the definition involving two consecutive quarters of decline. While the 2001 recession did not involve two consecutive quarters of decline, it was preceded by two quarters of alternating decline and weak growth.[59]
Late 2000s[edit]
2009 Economic Stimulus Package
https://www.thebalance.com/obama-tax-cuts-3306330
In February 2009, Congress approved Obama’s economic stimulus package. It restored confidence and ended the Great Recession in July 2009. Its cut $288 billion in taxes. It reduced that year's income taxes for individuals by $400 each and $800 for families. Instead of checks, workers received a lower withholding in their paychecks. It wasn't publicized very well, so many people didn't even notice the increase.
ARRA also reduced income taxes by the amount equal to the sales tax on a new car purchase. It provided $17 billion in tax cuts for households who invested in renewable energy. It included $54 billion in small business tax cuts.
The Congressional Budget Office estimated ARRA would save between 900,000 and 2.3 million jobs. In addition to tax cuts, it spent $224 billion in extended unemployment benefits, education and health care. It also spent $275 billion for job creation using federal contracts, grants and loans.
The ARRA also spent $83 billion in public construction and $117 billion to improve education. There was $18 billion in science research funding, $54 billion to help small businesses, and $22 billion to increase alternative energy production. Another $138 billion funded health care.That included $24 billion to subsidize the Consolidated Omnibus Budget Reconciliation Act benefits for laid-off workers and $87 billion to help states with Medicaid.
The WSJ piece overlooks that the Great Recession was different in kind from the cyclical recessions.
This was a financial crisis recession not unlike the one that crippled Japan for more than a decade.
United States[edit]
Main article: List of recessions in the United States
According to economists, since 1854, the U.S. has encountered 32 cycles of expansions and contractions, with an average of 17 months of contraction and 38 months of expansion.[8] However, since 1980 there have been only eight periods of negative economic growth over one fiscal quarter or more,[59] and four periods considered recessions:
July 1981 – November 1982: 15 months
July 1990 – March 1991: 8 months
March 2001 – November 2001: 8 months
December 2007 – June 2009: 18 months[60][61]
For the past three recessions, the NBER decision has approximately conformed with the definition involving two consecutive quarters of decline. While the 2001 recession did not involve two consecutive quarters of decline, it was preceded by two quarters of alternating decline and weak growth.[59]
Late 2000s[edit]
2009 Economic Stimulus Package
https://www.thebalance.com/obama-tax-cuts-3306330
In February 2009, Congress approved Obama’s economic stimulus package. It restored confidence and ended the Great Recession in July 2009. Its cut $288 billion in taxes. It reduced that year's income taxes for individuals by $400 each and $800 for families. Instead of checks, workers received a lower withholding in their paychecks. It wasn't publicized very well, so many people didn't even notice the increase.
ARRA also reduced income taxes by the amount equal to the sales tax on a new car purchase. It provided $17 billion in tax cuts for households who invested in renewable energy. It included $54 billion in small business tax cuts.
The Congressional Budget Office estimated ARRA would save between 900,000 and 2.3 million jobs. In addition to tax cuts, it spent $224 billion in extended unemployment benefits, education and health care. It also spent $275 billion for job creation using federal contracts, grants and loans.
The ARRA also spent $83 billion in public construction and $117 billion to improve education. There was $18 billion in science research funding, $54 billion to help small businesses, and $22 billion to increase alternative energy production. Another $138 billion funded health care.That included $24 billion to subsidize the Consolidated Omnibus Budget Reconciliation Act benefits for laid-off workers and $87 billion to help states with Medicaid.
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