The U.S. economy historically tends to thrive after a recession with gross domestic product (GDP) annual growth rates rising above 4, 5 and even 7 percent.
That hasn’t been the case since the Great Recession. While the economy has experienced growth in every year since 2009, the rise has been unspectacular. (The highest rate of GDP growth since the financial crisis was 2.6 percent in 2015.)
So why has the economy not rebounded as it has in the past? A working paper co-authored by Robert Hall, a senior fellow at the Hoover Institution and a professor of economics at Stanford, provides a unique perspective to the debate. His research identifies two factors that explain the economy’s slow growth – and both were in play well before the financial crisis and recession struck.
Read more at Stanford News