So be of good cheer; from now on, depressions and even recessions have been outlawed by the semantic fiat of economists; from now on, the worst that can possibly happen to us are "slowdowns." Such are the wonders of the "New Economics."
With the socialists propaganda machines in high gear, sometimes it is hard to believe we share a common language.
The government does not cause the economy to function as it does. Indeed, an expansion will be cut short by action on the part of the government to tamper inflation. However, if that did not happen, supply outstripping demand would eventually cause a contration. If that happened in an inflationary environment, it could lead to rapid deflation and thus a depression. The government smooths out the business cycle sometimes better than others. The current problem was caused by NOT doing this and believing that the long-term growth rate of the US had increaed. But, if it didnt, the above average growth of the last several years needs to be made up by below average growth at some point.
The government tries to inflict small corrections to avoid large ones. It is a good and necessary thing to prevent revolutioins.