The economy officially is slowing down, according to news reports, but it seems that journalists once again are confusing cause with effect:

The spring activity had been boosted by the $168 billion economic stimulus program, but the economy ran into a wall in the summer as the mass mailings of stimulus checks ended and consumer confidence was shaken by the upheavals on global markets. Consumer spending, which accounts for two-thirds of the economy, dropped by the largest amount in 28 years in the third quarter.

Unfortunately, this is not the only idiocy that appeared in this article:

On Wednesday, the Fed cut the federal funds rate — the interest banks charge each other on overnight loans — by half a percentage point, and the government finally began distributing funds from the billions in the financial rescue package.

Those efforts were part of a concerted drive by officials, just days before a national election, to demonstrate they are moving as quickly as possible to deal with the most serious financial crisis to hit the country since the 1930s.

“Policymakers have their foot to the accelerator and they are using every effort at their disposal to stop the slide in the economy and financial markets,” said Mark Zandi, chief economist with Moody’s Economy.com. “And it’s not a moment too soon given the serious damage that has already been done.”

Yes, yes. Why not just drop money from a helicopter and be done with it, Ben? No doubt, Mr. Zandi would praise your efforts to “stimulate” the economy.

This is the unfortunate legacy we have from the teaching of Keynesian economics (sic) for the past seven decades. People have come to believe that recessions occur because consumers suddenly stop spending money.