Is this the single fastest and most remarkable comeback from a recession in history? The answer can be affirmative to that question. Recent news says that national economic output soared to the highest rate in more than seven decades. The thirty-three percent increase to the highest GDP (gross domestic product) was twice the last record set back in 1950. During that year, Harry Truman was president, and economic growth was almost seventeen percent at the time.
No one forecasted something like this. The FED (Federal Reserve) had forecasted growth of around half of this rate. Most of Wall Street economic forecasters were predicting less than twenty percent growth. The same situation is concerning jobs. In September, the unemployment rate has lowered to below eight percent. The Congressional Budget Office and the Federal Reserve estimated that they would have unemployment at around twice the rate. It was not until the late coming year that unemployment would fall to this rate.
The United States Economy
The report on unemployment claims came because more than fifteen million Americans were off such benefits in just six months. Nevertheless, such blockbuster economic growth overshadowed that report. That has never happened in United States history. Moreover, the housing market is hotter than it has been in decades. Many buy new homes because they are leaving cities. The reason for that is concerns about congested areas, shutdowns, and riots that have sparked an exodus out to the suburbs. Since the pandemic began, small business confidence soared to its highest level. It is according to the National Federation of Independent Business data. Furthermore, small business confidence is higher than at any time in the last administration.
Job openings have occurred to more than six million unfilled positions. Also, that is a higher number than in the eight years that Joe Biden and Barack Obama were setting policy. Now, the recovery is almost entirely driven by workers and businesses with the private sector. Investment from the private sector increased by more than eight percent in late summer.
The reason for strong recovery is the health of the economy before the pandemic at the beginning of 2020. The United States had the lowest unemployment rate in fifty years, over six million unfilled jobs, and the highest income levels with median households. Meanwhile, poverty for all ethnicities, races, and genders fell to record lows. The results would have been much worse if the US went into the pandemic with a weak economy.
Nevertheless, fortunately for the United States situation is how it is.
