While it is true that the U.S. economy no longer actually is contracting, it is hard to argue that we are in anything resembling a robust recovery from the recession.
Federal Reserve Chairman Ben Bernanke drove that point home during a recent speech at George Washington University.
Contrary to the rosy assessments put out by the Obama administration, Bernanke noted that current investment and spending simply are not adequate to sustain real economic recovery.
Compared with levels prior to the recession, demand for consumer goods and services still is weak. And other factors that ordinarily would help boost the economy — such as borrowing and trade — have declined.
“Consumer spending has not … recovered,” Bernanke said. “It’s still quite weak relative to where it was before the crisis. We lack a source of demand to keep the economy growing.”