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The United States has recovered from the Great Recession caused by the financial crisis, with unemployment at low levels and real incomes rising. The financial crisis of 2006 was catastrophic for both the U.S. economy and politics. However, although real GDP per capita (D) hit a trough in the second quarter of this year, it had returned to pre-crisis levels in the fourth quarter of this year.
Similarly, the U.S. unemployment rate climbed to a high of .% in January 2006, but has now fallen to .%. The financial sector is also in much stronger shape than it was during the crisis.
Too many casual observers take this economic turnaround for granted. However, they forget that the Great Recession could have easily become another Great Depression. It was the decisive actions taken by the Federal Reserve, the George W. Bush administration, and the Obama administration that enabled the U.S. economy to recover so quickly, and everyone benefited from the economic recovery.
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