Whats so interesting about accelerated depreciation?
The main reason I look at things like accelerated depreciation is to find what’s missing from the economists’ models that’s causing them to get the job numbers so wrong. The old joke is, “we keep economists around to make weathermen look good.” There’s a touch of truth in that. But eventually they get it right. They’ve been just so wildly wrong that you have to go back to square one and figure out what are their models overlooking? After the market crash and the start of the recession, companies just weren’t making major capital expenditures. So the [Bush] Administration decided to test a theory that if we can give them an incentive to depreciate things faster, they would buy more of these big-ticket items and theoretically, it would stimulate the economy and would create jobs. Q: Business spending has risen mainly because of this rule? A: After the war started and after the tax law was passed in May of 2003, we saw purchases of major items start to pick up. It encourages companies tha
