“There is a flaw in the model here or WSJ is somehow misintepreting what the research means.”
I don’t think there is a flaw as I have seen similar data before. If this is wrong, someone should be able to provide corrected data, and I’ve not seen it. So, take a good look at that graph. It’s real and it’s telling you something.
You might also want to take a look at posts 33 and 76, and maybe reread the article.
I looked up (and downloaded) the data yesterday (a good piece from the Dallas Fed) and reproduced this chart along with the chart for the growth of the inflation adjusted GDP. If you’re interested, I can email a copy.