‘Economy Has Not Recovered,’ White House Says Before Blaming Bush Three Years After Recession Ends

June 13, 2012 - 4:53 PM

Jay Carney

White House Press Secretary Jay Carney presides at the daily news briefing at the White House on May 3, 2011. (AP Photo/Carolyn Kaster)

(CNSNews.com) White House Press Secretary Jay Carney said Wednesday that the U.S. economy has not recovered three years after the end of the recession. Despite this admission, Carney still saw fit to blame former President George W. Bush.

“I think people are still hurting. I think the economy has not recovered, and it’s not where it needs to be,” Carney said at his daily White House press briefing Wednesday.

Carney said the country was still “emerging” from a recession, despite the fact that the recession ended exactly three years ago in June 2009.

Carney pointed to a recent report from the Federal Reserve Board that found that median household net worth had declined by almost 40 percent from 2007 to 2010 – a fact he said highlighted the severity of the 2007-2009 recession.

“That is a terrible situation, and I think it highlights the kind of economic situation we found ourselves in, in 2008 and that this president confronted when he took office in 2009,” he said.

Carney then proceeded to criticize Bush, lashing out with a litany of Democratic caricatures of Bush’s policies.

“And if I may, it elucidates why we cannot sensibly adopt the policies that helped create a situation where median household wealth dropped 40 percent in a little over a year,” he said.

“So why adopt policies that say ‘You know what? Let’s let the financial industry write its own rules again. Let’s repeal Wall Street reform. Let’s let credit card companies have their way with consumers. Health insurance companies? Go for it! Take advantage of people again – because it worked so well in the first decade of this [century],” Carney added.

Carney neglected to mention that the recession ended after only six months of President Obama’s first term in office and since that time unemployment has remained high, never falling below 8.1 percent in the past three years.

Further, while the 2007-2009 recession was severe, it was not caused by credit card companies or health insurers, contrary to Carney’s claim that those things “helped create” the recession.

In fact, according to the Fed report Carney alluded too, the 40 percent reduction in median household net worth was due to the collapse of the housing bubble and the drastically lower real estate prices that resulted.