Actually, IMO the recession was short and mild primarily because of the 2001 tax cuts (Federal deficit spending) and significant interest rate cuts from the Federal Reserve. In early 2000 the market crashed, and along with it $8,000,000,000,000 was lost. In the past, such market crashes resulted in very deep recessions (or depressions) in the United States. When President Bush first signed the 2001 tax cuts, most experts claimed that the money would not be spent by consumers, but used to reduce consumer debt - this turned out to be false, and consumer spending was one of the few bright spots in the economy.
Also, there was no recession at the end of President GHWB's term. When President Clinton took the Oath of Office, the Nation had been in an economic recovery for almost 2 years. This is why President Clinton could bragged (and rightfully so) about the 10 year economic recovery that occurred during his eight years as President.
re: "Of course it was one of the mildest and shortest recessions on record, and ended December of the same year. Much smaller a recession then the one at the end of Bush I." |
