ABSTRACT
This chapter compares the macroeconomic experience of the US economy during what they are calling "the Obama recovery" with the previous recoveries from previous recessions. It explains the sluggishness of the recovery as revealed by the behavior of major macroeconomic indicators; information about the trends in income inequality over the course of period since 2009; and information as to whether it appears that the recovery is running out of steam. According to Keynes and economists in the progressive tradition, when the economy experiences a recession, the appropriate government fiscal policy is to increase spending and/or reduce taxes in order to stimulate aggregate demand. The key variable in understanding how investment contributes to economic growth is to observe the ratio of investment to gross domestic product. The Obama administration succeeded in making some changes to the tax and transfer system which tended to reduce economic inequality.
