A growing list of economic indicators is pointing toward a downturn in the U.S.A. next year. Consider the following:
Historically, economists have looked at two economic policy instruments to forestall and mitigate recessions. First is an easier monetary policy, which is controlled solely by the Federal Reserve. Second is an expansive fiscal policy, such as a tax cut. A tax cut now could well head off an economic downturn next year, by improving incentives and consumer confidence.
Source: Bruce Bartlett, senior fellow, National Center for Policy Analysis, December 11, 2000.
For text http://www.ncpa.org/oped/bartlett.html
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