Some say that recoveries from deep U.S. recessions–or from financial crises–are usually slower, but this is simply not true. Below are similar charts from the 1893-94 recession
and from the 1907 recession,
both associated with severe financial crises. You can see the sharp rebounds, nothing like the terrible recovery we have seen recently. This does not imply that the period after these recoveries was smooth; indeed a double dip followed the recovery in the early 1890s.
Of course potential GDP is difficult to measure so it is important to look at alternative charts. The next one used GDP growth rates. The average real GDP growth rate in this recovery has been only 2.2 percent, even lower than the 2.4 percent before the data were revised.
Finally, with today’s July employment numbers you can see the extraordinarily weak employment record in this recovery. The employment-to-population ratio is still lower than at the start of the so-called recovery. We now know that it fell in July as shown in the lower right part of the chart.