Focus Point - What Recession?Commentary by Pete du Pont
October 01, 2001
I'm Pete du Pont with the National Center for Policy Analysis. How bad was the economic loss in the wake of the terrorist attacks? Bad enough for some analysts to conclude that we're in a recession, informally defined as two consecutive quarters of negative GDP growth.
Well, we are, but as horrific as the loss of life and property were at the World Trade Center and Pentagon, the purely economic loss will not be fatal to a $10 trillion economy.
If we follow the correct policies, a long recession can be avoided. The fed is easing monetary policy. The congress will add a significant amount of money for fiscal stimulus in the coming months. It's likely there will be a capital gains tax cut, and business investment should rise as businesses buy new equipment and make other investments to cope with the terrorist threat.
The economy's been dropping for 20 months, and is poised for a recovery. The only questions are when and how strong it will be.
Those are my ideas, and at the NCPA we know ideas can change the world. I'm Pete du Pont. Next time, Islam, the capitalist religion.