Economy not as strong......
Interesting article. The economy was slowing in the last 6 months of the Clinton administration, and finally was noticeable during the second half of the first Bush year, being brought to a quick head by the 9/11 events. It has been a mild recession nonetheless, as interest rates have remained low, and the housing market steady.
What most people don't seem to understand is that the President has almost nothing to do with the economy and Congress has only marginal impact, mostly in the taxing areas ... whereas what saved our economy from mid 1994 until recently was foreign investment, especially from Asia and the Pacific Rim nations. The investment money is still here, but the infusion has slowed as these nations are investing less because their own economies are bouncing back.
This recent recession is largely due to needed market correction, cleaning our the rift-raft like Enron, Worldcom, etc. and tragic events scaring the beegeebers out of investors.
And from 1995 (the year of the Internet, as one magazine called it) to 2000, when businesses realized the market potential of the Web, they went on a tear buying routers, servers, hiring programmers and Website consultants, (though skimping on cybersecurity), and so on. But the market reached a peak eventually (Cisco for one was hurt by its earlier sales of hardware; when dot coms became dot bombs, they sold their equipment to other companies and Cisco lost sales). And the market for new PC's is flat too.
Some could well see this as an indictment of the power of supply-side economics. As noted earlier, taxes were cut, unemployment remains just under six per cent, and inflation is low. Under SSE, these circumstances should produce a healthy economy. Yet with lower unemployment (lower than considered healthy for an economy) and inflation almost nonexistent sometimes during the Clinton years (expected to be serious because of wage gains and very low joblessness), the economy soared. So in both cases the economy wasn't/isn't responding the way models and theory say it should.
I wonder how much the fear of Y2K added to the GDP.