The 2001 Recession

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• Computer users and programmers feared that computers would stop working on Dec. 31, 1999.

• The scare led to an economic boom that was short-lived

• many companies and individuals bought new ones with software that was supposed to be Y2K compliant.

• Subsequently, the stock market dropped in March 2000, and as stock prices declined, dot-com companies went bankrupt

• The 9/11 attack worsened the downturn. The markets closed for several days after the attacks, and the New York Stock Exchange did not reopen until Sep. 17, 2001

• These tax cuts by the Bush administration enabled taxpayers to keep more of their own money. The economy returned to growth in the fourth quarter of 2001