The Economic Recovery in a Nutshell

Russ Steele

Sometimes it is hard to understand all the economic rhetoric, the blather of talking heads, the mind numbing economic analysis of the pundits, and the lies of the Obama administration about the pace of our economic recovery.

However, I think a Forbes' article by Thomas F. Cooley and Peter Rupert, which has three interesting graphics which might clear things up for you. The current cycle continues down, down, and down, with no sign of any upward motion. 


Clearly, there is no evidence of recovery in this picture or that the stimulus has had any effect on consumption. As is well known and easily inferred, people have to rebuild their balances sheets and are saving more. The next picture shows the time path of investment in the same way.


The last picture shows data for employment. The two previous recessions were not as severe and did not last as long as out most current decline. Evidently, the current recession will hit bottom much later than most of its predecessor’s.



Questions?  Yea, I know Obama thinks it is all Bush's fault and only after the lines start up will it be Obama's recovery. There you have it in a nutshell. No recovery yet!