Question

As a result of the recession that began in 2007 and continued into 2009, the unemployment rate rose to as high as 10 percent. By the time of the presidential and congressional elections of 2012, the economic recovery was under way, but the unemployment rate was still around 8 percent. The Republicans saw this as evidence that the Democrats’ economic policies had failed to deal with the lasting effects of the recession. They, in fact, blamed the lasting high unemployment on the policies of the Democrats and President Barack Obama.

The Democrats and President Obama pointed to increasing real gross domestic product (GDP) as evidence that the economy was fundamentally sound and was no longer in a recession. Both parties could not be right—either the economy had entered a period of expansion and the policies of the Democrats were working and they should get credit for it (whether deserved or not), or had not but had in fact contributed to continuing high unemployment.

Why do you suppose that one party can at the same time be blamed for not really ending a recession and itself take credit for ending a recession?

Answer 1

ANSWER: Generally, Recession is an economic condition where the business cycles of an economy may gets slow down and due to that reason, several economic activities will also slows down and thuus we will face lower GDP, unemployment etc...Due to this slowdown nature of the business cycles and several economic activities leads to consequences such as lower GDP, increase in the unemployment and so on.

Also republicans has said that the democrat's economic policies had failed to deal with the lasting effects of the recession. with the lasting effect of the recession they particularly refers to the high unemployment. If we observe the data we can find out the recession that occured in 2009 left the economy with high persistent unemployment that remained as of december 2012, along with the low consumer confidence, there is a continuing decline in the home values and increase in the foreclosures and personal bankruptcies, and an increasing federal debt,inflaton and rising petroleum and food prices. Because of these results even after several measures taken by congress republicas had such opinions.

But looking on the other side, economic data shows the historical modest recovery. GDP first started contracting in third quarter of the 2008 but then return to growth in the quarter 1 of the 2010. By the final quarter of 2014,the US GDP had grown by 18.6% which is nearly equal to $17.7 million. This could have been because both the private and the public levels of the debt were at historic highs in the U.S and also in many other countries. Therefore, from both the unemployment and GDP point of view the same party is being criticized and also get credited.