Critics are dubious, particularly in light of the carnage on Wall Street, reduced consumer confidence, energy shortages, bleak corporate earnings and mounting layoffs. And the American economy has slowed to a virtual standstill after growing at an anemic annual rate of just 1.1 percent in the final three months of 2000. Furthermore, a declining stock market can eat away at capital gains tax revenues to the Treasury. But some Wall Street firms and private forecasters have since lowered their own estimates. The administration brushes aside short-term weaknesses in the economy and the stock market, preferring instead to look at the long term.
Many economists say historical trends can support such an approach.
He noted that the average recession lasts nine months. The weakness we're experiencing now should have very little impact on the budget surplus projected for a 10-year period,'' he said. Still, Reischauer said he is leery of trying to forecast so far in the future. The administration sounds like the Bad News Bears,'' said Senate Minority Leader Tom Daschle of South Dakota. This article published in the Athens Daily News on Monday, April 2, 2001. send this story to a friend discuss this story email the editor opyright 2001 Athens Newspapers Inc.