by Clifford F. Thies,
Eldon R. Lindsay Chair of Free Enterprise and Professor of Economics and Finance
Shenandoah University

The economic indicators released by the Conference Board today confirm what everybody already knows: We’re in one “L” of a recovery.

In the following chart, the “L”-shaped recovery is shown in the green line. This is the index of coincident indicators. It is based on employment, sales, production and income, four broad measures of economic activity. As you can see, after the economy began its so-called recovery (which, not yet hearing from the NBER, I have placed at July 2009), the index of coincident indicators has moved up, but at a pathetic pace.

In contrast to the “L”-shaped recovery we’re currently “enjoying,” in the past, when we have suffered severe recessions, we have had “V”-shaped recoveries. For example, while a certain person was President, concerning whom you are reminded at RR crossings, we had a strong “V”-shaped recovery. Check out the green line the following chart, after the second blue line. Of course, that President used tax-cuts and deregulation to spur economic growth. In contrast, the current President, like Dr. Frankenstein, is checking to see if tax increases and re-regulation can be just as effective, in the name of science.
The "stimulus" effect of last year’s stimulus bill was zilch. No continuing momentum. Just a trillion dollars down the toilet. Thus, at this time, the Democrats are scurrying for Plan B, call it the Bride of Stimulus, and Republicans are looking forward to this year's elections with some anticipation.

The Democrats really have no clue as to what to do. They're all about re-distributing the economic pie, not about baking it.

Some of them are talking about "going after" those who violated laws who got us into this mess (they must be out there). In the absence of probable cause, they’ll just go after the usual suspects. You know, the rich, the insurance companies, and medical doctors, not to mention the foreigners and the Wall Street fat-cats. Oops, sorry, the Wall Street fat-cats are Democrats nowadays. This thinking simply reflects that, in their socialistic world, the "incentive" is that you're not punished.

Dr. Thies is a former Libertarian National Committeeman, former National Chairman of the Republican Liberty Caucus, former member of the Libertarian Defense Caucus, Young Americans for Freedom and a Libertarian Republican since the late 1960's. He is Senior Editor of Libertarian Republican.