Pro-Con | Is the recession truly over? Yes

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Officially, the Great Recession is over, at least for the United States. The economy recorded 3.5 percent annual growth for the third quarter of 2009.

Fortunately, the administration of then-President George W. Bush recognized the severity of the crisis and provided emergency financing for U.S. banks teetering on the brink of insolvency. Those efforts were followed up by the stimulus measures passed by his successor, President Barack Obama. A $787-billion package is still percolating through the U.S. economy, providing a much-needed boost for spending as demand evaporated.

Additional measures found some success, such as the “cash for clunkers” program, which encouraged consumers to trade in old cars for newer, more fuel-efficient models, and a federal tax credit for first-time home buyers that helped revive a housing market whose implosion had set off the global crisis.

Orders for durable goods rose 22.3 percent in the third quarter. That number was eclipsed by the 23.4 percent rise in housing sales, spurred by an $8,000 tax credit. The result was 3.5 percent growth, a return to the average rate recorded over the last 80 years.

Istockanalyst.com

Posted on Tue, Nov. 10, 2009 10:15 PM

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