Reagan Versus Obama Recovery: 5.85% Annual Household Income Growth Versus 1.10%

The ADP jobs report is out this morning and we saw an additional 179K jobs added in July. But is this a strong recovery as some think?
A natural comparison of the Obama/Fed recovery is to compare it to the Reagan recovery. Much like Mickey Mantle versus Willie Mays and Cassius Clay versus Sonny Liston. Probably more like Clay (aka. Ali) versus Liston.
First, let’s take a look an unemployment and median household income. Both Reagan and Obama inherited deteriorating economies and rising unemployment rates. Reagan’s unemployment rate peaked at 10.8% in November 1982 while Obama’s unemployment rate peaked at 10.0% in October 2009. Both Presidents saw U-3 unemployment rates fall in half over their terms in office.
The BIG difference came in the form of median family income. Reagan’s economy grew at an average rate of 5.85% from 1981 to 1989. Obama;s economy grew at an average rate of 1.10% from 2009 to 2015 (2016 hasn’t ended yet, but it looks like that average of 1.10% will be lowered by the end of 2016).

This post was published at Wall Street Examiner by Anthony B. Sanders ‘ August 3, 2016.