How to show the desktop on Windows 7

I recently switched from Windows XP to Windows 7 and one of the things that I found blatantly missing is the good old Show Desktop icon on the taskbar. It took me a bit of Googling before I found the answer.

To show the desktop, click the short bar on the rightmost part of the Windows 7 taskbar. See the screen shot below. The short task bar is marked by the red rectangle.