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To: Charlie Smith who wrote (19002)	2/9/2001 8:00:36 AM
From: limtex	Respond to of 60323

CS Slump Best regards, L

To: Charlie Smith who wrote (19002)	2/9/2001 9:54:42 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

Charlie, the Administration has begun using the word "slump" because they don't want to give the public the impression that the current economic situation is a recession. A recession is defined as two quarters of negative growth in gross domestic product. The Administration would like people to believe this is a recession (and it may become one if people believe it) in order to make a tax cut more attractive and more likely to be approved by Congress. This is cynicism at its worst. I say worst, because the proposed tax cut would be very inefficient in stimulating the economy. If they wanted instant stimulus, they would (1) send everyone a check for a couple hundred dollars, or (2) cut the corporate income tax in half, or even virtually eliminate it. Hence, because they can't honestly say we're in a recession, they use the word "slump." Art