Huffpost Politics
Zach Carter Headshot

Jack Welch Invents '2009 Recession' And New Economic Metric To Criticize Barack Obama

Posted: Updated:

WASHINGTON -- Former General Electric CEO Jack Welch rewrote economic history during a Saturday appearance on Fox News, criticizing President Barack Obama for "the 2009 recession," while offering a new metric by which unemployment would be 11 percent.

"The real unemployment rate, if you take the last 10 years prior to the 2009 recession, a 10-year average of what's called the participation rate -- how many people are working temporarily, full-time, and wanting to work -- if you take that number, and you take the 10-year average, and you run it now with this workforce, you would have an unemployment rate close to 11 percent," Welch said.

There is, in fact, no specific "2009 recession." According to the National Bureau of Economic Research, the official committee that measures and studies economic cycles, the U.S. economy entered a recession in December 2007, which ended in June 2009. Recessions are categorized as periods in which gross domestic product -- a measure of economic output -- declines. The effects of this decline can reverberate in the labor market for years after growth resumes. By referring to "the 2009 recession," however, Welch creates a timeline in which Obama is the only president presiding over economic hardship.

Welch's reference to a "10-year average" is also curious. Ten years ago, it was 2002. George W. Bush was in his second year as president of the United States.

The official unemployment rate is currently 7.9 percent.

Welch's comments came during an interview with Fox's Neil Cavuto, in which Welch claimed that if Mitt Romney were elected president, economic growth would be roughly double what it will be if Obama is reelected. Welch based the claim on his view that heavier fracking and more aggressive coal mining will exist under Romney, generating additional economic output.

Welch garnered notoriety in October for making the baseless assertion that Obama's "Chicago guys" were fabricating falsely positive jobs data. The August and September jobs numbers Welch referenced were eventually revised upward, showing stronger growth than previously believed. This revision process is routine.

Also on HuffPost:

11 Paranoid Obama Conspiracy Theories
of
Share
Tweet
Advertisement
Share this
close
Current Slide

Suggest a correction

Around the Web

Home | The Jack Welch Management Institute

Jack Welch - Wikipedia, the free encyclopedia

Jack Welch (jack_welch) on Twitter

Jack Welch: I Was Right About That Strange Jobs Report - WSJ.com

Jack Welch Breaks With Fortune Over Jobs Report Comments ...

Why Jack Welch Has A Point About Unemployment Numbers - Forbes

Welch can't take the heat: I quit - The Term Sheet: Fortune's deals ...

Jack Welch Claims Jobs Report Suspicions Correct - ABC News

Jack Welch fires back over jobs report flap - Bottom Line

 
  Obama Romney
Obama Romney
332 206
Obama leading
Obama won
Romney leading
Romney won
Popular Vote
33 out of 100 seats are up for election. 51 are needed for a majority.
Democrat leading
Democrat won
Holdover
Republican leading
Republican won
Democrats* Republicans
Current Senate 53 47
Seats gained or lost +2 -2
New Total 55 45
* Includes two independent senators expected to caucus with the Democrats: Angus King (Maine) and Sen. Bernie Sanders (Vt.).
All 435 seats are up for election. 218 are needed for a majority.
Democrat leading
Democrat won
Republican leading
Republican won
Democrats Republicans
Seats won 201 234
Click for Full Results