The Great Recession isn't over

The Dow-Jones average is teetering below 9500, and job creation is not keeping up with jobs lost. Economists and pundits are raising the specter of a "double-dip recession." Little in economic statistics or anecdotal evidence gives much hope that the economic good times are returning.

An article in the March Atlantic examines the truly frightening prospects of the long-term impacts of this Great Recession — perpetually high unemployment, whole neighborhoods turning into unoccupied slums, a weakening of marriage because of occupational uncertainties. Such a catastrophic scenario might not unroll, but it could, and there may be little the government or anyone else can do about it. The Federal Reserve can't lower interest rates to stimulate the economy because rates are already near zero. Congress' ability to "prime the pump" appears ineffective, given the lack of success of last year's $700 billion stimulus and the soaring federal debt.

There are many causes for this recession, including over-speculation in complicated new investments, an overheated housing market and a feeling of insecurity among consumers. Perhaps the most fundamental cause, however, has been brewing for decades — the loss of American manufacturing. Since the 1980s or earlier, we've been deluding ourselves into thinking that in the "new economy," we could sustain our standard of living by selling each other fancy financial investments, lawn services, hamburgers and concert tickets. A sound economy is built on creating something, not on swapping services. The American economy might not see the "good times" again until it begins making things that the public wants to buy, whether it's cars, televisions, hammers or widgets. America needs a tax policy that encourages manufacturing in America by American workers.