For the first time ever, the U.S. economy started and ended an entire decade without entering a recession. It’s been the longest expansion in the country’s history, taking place during a decade marked by the memory of the Great Recession and unprecedented access to information about the state of the economy. But overall economic growth during this decade has been slower compared to previous booms.
There’s a saying among economists that “expansions don’t die of old age.”
In the case of the American economy over the past decade, it rings true.
As of December, the U.S. economy has expanded for a record 126 straight months, the longest time period in the country’s history according to the National Bureau of Economic Research. Put another way, the U.S. has avoided a recession for an entire calendar decade for the first time ever.
“It is unusual that this has been such a persistent recovery,” Michelle Meyer, chief U.S. economist at Bank of America Merrill Lynch, told CNBC.
Economists cite a few reasons for why the expansion has lasted for so long. For one, the U.S. was coming from a low point at the end of the last decade. Much of the expansion over the past ten years has been spent recovering from the Great Recession.
“It’s almost hard to imagine how awful that time was,” said David Wilcox, former director of the Division of Research and Statistics at the Federal Reserve Board and a current senior fellow at the Peterson Institute.
Job growth, for example, has recovered more slowly than in previous economic booms, in part because unemployment was so high during the financial crisis. As some economists have said, the deeper the hole, the longer it takes to climb out.
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How The U.S. Avoided A Recession For A Decade…(read more)
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The United States has managed to avoid a recession for over a decade, an impressive accomplishment in the wake of the global financial crisis of 2008. The country’s economy has seen steady growth and expansion since the end of the Great Recession, and has managed to weather economic challenges and uncertainties with resilience.
There are several key factors that have contributed to the U.S. economy’s ability to avoid a recession for such a prolonged period of time. One of the main drivers of economic growth has been the country’s strong consumer spending. With a robust labor market and low unemployment rates, American consumers have continued to spend and stimulate economic activity. This has been supported by wage growth and low inflation, allowing households to have more purchasing power.
In addition, the U.S. has benefited from a strong housing market and low interest rates. The Federal Reserve has implemented accommodative monetary policies to support economic growth, and has kept interest rates low to encourage borrowing and investment. This has helped to boost the housing market and stimulate construction activity, which has been a significant driver of economic growth.
The U.S. economy has also been buoyed by strong corporate profits and investment. Businesses have continued to invest in new technologies and expand their operations, contributing to job creation and economic growth. The country’s energy sector has also played a key role in boosting economic activity, as the shale revolution has made the U.S. a major producer of oil and natural gas, reducing energy costs and boosting competitiveness.
Furthermore, the U.S. has benefited from a resilient global economy, despite challenges such as trade tensions and geopolitical uncertainties. U.S. exports have continued to grow, driven by strong demand for American goods and services in overseas markets. This has helped to offset some of the challenges posed by a slowing global economy and geopolitical tensions.
It is also worth noting the role that fiscal stimulus has played in supporting economic growth. The U.S. government has implemented tax cuts and increased government spending to stimulate economic activity, which has helped to boost consumer and business confidence.
Looking ahead, there are potential risks and challenges that could test the U.S. economy’s ability to continue its unprecedented expansion. These include factors such as trade tensions, rising levels of corporate debt, and potential global economic slowdown. However, the U.S. has demonstrated resilience and adaptability in the face of challenges in the past, and is well-positioned to address these potential risks.
In conclusion, the U.S. economy’s ability to avoid a recession for a decade can be attributed to a combination of factors, including strong consumer spending, a resilient housing market, low interest rates, strong corporate profits and investment, and a resilient global economy. While there are potential risks on the horizon, the U.S. has proven its ability to navigate economic challenges and is well-equipped to continue its impressive economic expansion.
I used to think every investor went broke during recessions, meanwhile some made millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some and profit for others, it all starts from having the right mindset. That said, I've set asides part of my savings to invest for future. Unfortunately I'm a complete noob.
The recession was just waiting for the Biden administration
There becomes too much civilisation as said by Marx and Engels in communist manifesto,it becomes antagonist with existence of labouring force
We avoid recession by changing the meaning of it and ignoring it.
They avoided a recession by making money FREE to borrow. And now they have to fix and keep raising interest rates
Blah, blah, blah, excuses, excuses.
Delaying only makes it worse.
Look a lot like Reily Reid
We had Trump not this weak minded fool
CHEAP ALIENS
Crime. Crime is how they did it.
And the Hollywood liberals like Bill Maher wish for a recession and now they got it. Let’s go Brandon.
This aged like a sack of dead babies.
This was made a year ago …. US DEBT JUST ROSE TO 30 trillion …
Ha ha ha ha! I had the EXACT same thought as Fau below, namely that this video hasn't exactly aged very well. Just a couple of months before the COVID-19 pandemic was announced in the United States and precisely when it was already ripping through Southeast Asia, this video was boasting about how the U.S. has gotten through an entire decade without a recession. The first problem with that is totally obvious. The second problem is that surprise and pride about making it through a (whole…LOL) decade without a recession speaks volumes about how truly awful the U.S. system of unrestrained capitalism is. There are so many other problems suggested by the making of this video, but the final one on which I'll comment is that the U.S. as a WhOLE might have, in fact, gone through a decade without a recession, but not only was that period kicked off by a financial crisis that nearly toppled the entire world's economy, but during that time (and for the three decades preceding that financial crisis), the wealth gap in the U.S. widened by a historically unprecedented amount, while wages for over 90% of U.S. workers stagnated at the very time their productivity increased dramatically. I guess, then, you could say that for people in the top 10% of people economically—and even more so for the top 1%–there was no recession for a decade, but for the rest of the population, that decade was just one long, drawn out recession that culminated in pandemic-induced mass unemployment the likes of which the U.S. has not seen since the Great Depression nearly 100 years earlier. Great job, CNBC! LMAO
Keeping interest rates at zero for this long will bring the greatest recession we will ever see
The irony in this… lmfao.. it’s funny but sad at the same time..
Newsflash: We never left the Great recession!
Y’all jinxed it. It’s about to get worse.. “cough…. 1929”
Hahahahahahahaha
Here from 2025, dollar is worthless and everyone is rioting
How the US avoided recession: it's just never ended since 1937
2020 changed this folks pandemic 2020!!!!
8 years of Obama is how we avoided a recession for a decade. America is more prosperous when democrats are leading. We had a better economy under Bill Clinton as well.
How? 0% interest rates.
All thanks to Obama ,I think trumps miscalculated he inherited a stable economy
Easy… introduced Covid19.