In the years since the recession in 2009, financial growth has averaged 2.2%, barely half the 4.2% average of the seven previous recoveries. Much of this is due to the fact that the difficulties in this recession have hit harder than in the past. Our banking system is damaged, people are in too much debt and now are scared to spend what money they are finally making back. Barack Obama's Council of Economic Advisers issued a report on March 15th arguing that there is more to it than that. They also argue that these trends that we are seeing now are much smaller than in previous recessions. Showing that the slowed recovery is not nearly as disappointing as it was once thought to be. Obama's advisers also stated that they believed that some of these trends were already in effect before the recession even hit. The report they published cites three different estimates of the extent in which a lower trending rate points towards the weak recovery. The council also estimated potential by switching to a long run average of actual output which was then adjusted for the business cycle. The report concluded that lower trend growth accounted for a little over half of the shortfall.
http://www.economist.com/news/finance-and-economics/21573969-demography-may-explain-weakness-americas-recovery-where-did-everyone-go
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