Research by the Dallas Fed Shows That Our "L" Shaped Recovery Is Typical In Financial Crisis Recessions

Two of Harvard's conservative economists have correctly argued that the V shaped recovery from recessions has been the typical pattern of recovery from recessions in the US, and that our current L shaped recovery is atypical. Robert Barro takes this a step further and argues that the Obama administration's response to the recession is the cause of the L shaped recovery. He claims that the administration's policies have created uncertainty and loss of confidence in the business community. He proposed structural reforms to tax policy and government regulation to encourage business investment and restore economic growth.

This article from the Dallas Federal Reserve shows that the L shaped recovery from recessions is the typical pattern of recovery from recessions associated with a financial crisis. There is no reason to believe that the Obama administration has caused a loss of confidence in the business community and the L shaped recovery. A good case can be made that the administration could have done more to stimulate the economy, and that opposition from conservative politicians and economists, like Barro, contributed to the weak response.