Hold the phone, in spite of the steady drum beat by the administration that our economy is on the move up, we get the news that the economy actually CONTRACTED in the last quarter of 2012!  If you have not yet noticed the lackluster performance of our so-called “recovery” this should draw your attention to it.  It appears as though this has been the worse recovery in the last 100 years. 

The last four years certainly compares badly with the first four of the Reagan administration.   Then President Reagan entered office with GPD growth rate at 2% and unemployment at 7.8%.  GDP dropped to 1% growth in 1982 and  unemployment rose to 10%.  However, by the 1984 election GDP was growing at 9% and unemployment had fallen to 7.5% and to 5.8% by the end of his second term.  In contrast President Obama faced a financial panic that translated into an unemployment rate of near 9% by the end of his first year in office while GDP rose by just over 1%.  By the end of his first term unemployment still remains about 8% and GDP has not grown by more than 2% in any one year. 

Most economist agree that our economy has to grow by at least 3% per year in order to bring our economy back to “normal” growth and unemployment of 6% or less.  And now we see growth to have actually contracted in the last quarter.  Again, we are suffering the worse economic recovery in the last century.  And there is little prospect or hope for this to change.