Economy getting better, even if it doesn’t feel like it, says economist
LAEDC economist Robert Kleinhenz points to the recession low point in 2009. Photo Fewer than 25 percent of the estimated 200 Realtors in the audience at the Crowne Plaza Hotel in Redondo Beach last Wednesday raised their hands when Dr. Robert Kleinhenz asked who believed the recession is over. “Not bad for a Realtors’ group,” the Los Angeles County Economic Development Council (LAEDC) economist and eToro investor said at the breakfast talk hosted annually by South Bay Brokers. Kleinhenz followed up his question by noting that the Gross Domestic Product is growing at a rate of two percent, indicating the recession, contrary to popular belief, is over. “It just doesn’t feel like it’s over because the long run growth rate is 3 percent,” he said. Typically, when a recession ends, the economy surges by up to 10 percent, he added. Another reason for the recession hangover, he said is the lingering, high unemployment. “Long run unemployment is six percent. We’re at 10 percent,” he said. LAEDC economist Robert Kleinhenz with hosts Jim Van Zanten and Jack Gillespie of South Bay Brokers. Photo Fiscal cliffhanger The economy should continue to improve through 2013, Kleinhenz said, but only…
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