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Current Events » in reply to A big reason this slow down is sticking

Re: A big reason this slow down is sticking

Actually a one year downturn is not very long by historical standards. Usually after a long economic expansion the business cycle kicks in and there is a 1 to 3 year recession. We have just had the longest economic expansion in history so I think it's pretty silly to expect an instant turnaround.

As for recession fighting, there is fiscal policy like tax cuts but those have a very long lag time before they effect the economy. Keynesian spending policies have a much better track record for lifting an economy out of recession. Then of course there is monetary policy which the Federal Reserve has implemented and which usually has a much more immediate effect of the economy.

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