The Recessionistas Were Decisively Wrong

Now let’s look at what did happen. The 2003 tax cuts increased wealth in every segment of the economy, sparking a multi-year boom. But these tax cuts were passed with expiration dates, and the first Bush-tax-cut expiration occurred at the end of last year when small businesses lost some of their ability to take a tax deduction on purchases of business equipment. As the chart shows, this event coincided with a trough in the economic cycle. This past winter, congressional Republicans successfully fought to add the small-business tax breaks to what otherwise was a useless stimulus package, and the market for business equipment recovered in the spring. Voilà — the economy snaps back to 3.3 percent GDP growth.

Will the New York Times and the rest of the media storm-crows who spent most of the spring and summer cackling the “recession” word admit their error and reverse course? I think you already know the answer to that question.