This expresses the serious need to reexamine current Economic policy.
Bush adherents still laud the Bush economic plan, making claims which simply do not exist. This is intended to be a short rebuttal of these claims, basically based upon the Congressional Budget Office Monthly Budget Review, Nov. 7, 2003. It also uses information gathered by the AeA, as reported by Yahoo(Economy). All statistics have been checked carefully by accredited Economists.
The Economy has been shedding high-tech Workers since before the end of 2001, the last point the information can be checked; due to Government Economists again altering the method of data collection, most probably just to hide poor economic performance. There were 6.5 million high-tech Workers at the end of 2001, making 11.2% of total national Wages. Their average yearly salary in 2001 was $66,300 per year. There were 540,000 high-tech Jobs lost in 2002, with 234,000 lost in 2003--if it continues at the same pace. There are only 5.73 million high-tech Jobs today. The Author estimates the average high-tech Job-loser lost approximately $20,000 per year in Income by alternate employment, if such employment could be attained.
Four million Workers have exhausted their Benefits without finding works. The Federal Extended Benefits program will expire on December 31th of this year. Two separate extensions have been proposed, but the Author estimates Congress will not authorize these extensions until the new Session in January; a practice which saved some Billions last year from an understated Deficit.
Congressional spending is a major problem today, especially in conjunction with the Bush Tax Cuts. 'On-Budget' deficit--minus SS Trust Fund surplus and Postal Services transactions--will equal $535 Billion this year. Congressional spending increases averaged 7.2% for FY2003, and 7.9% for FY2002. Congressional Committee to eliminate excess spending from Welfare programs suggest a $143 Billion reduction over the ten years in which the National Debt is estimated to double; if current Tax Cuts are extended. Some 3.8% of Federal revenues were lost FY2003--$71 Billion. This is 12% below the Federal revenues of FY2000.
Congressional spending patterns are unlikely to change, with a probable spending increase of around Seven percent plaguing Us. The current expectation of the doubling of the Debt in ten years does not take into account Congressional increases in spending. Congress, itself, claims further waste cannot be removed from Government entitlements, except for $143 Billion. This will not even make up for spending increases of Government.
The above information is agreed to by almost all Economists. Here the Author will diverge from common Economic thought. The Economy would have to expand by an excess of Ten percent a Year for the next Ten years, in order for Federal revenues to return to those equivalent to FY2000; if the current Tax Cuts are extended. Congress will be running deficits, if Federal revenues do not exceed those of FY2000. It was heretofore mentioned the National Debt is expected to double. FY2004 is expected to have a Deficit equal to a percentage of GDP not seen since 1950. Most Economists would agree Federal Government absorption of Investment funds would become critical, if the National Debt increases by $2 Trillion dollars.
The Federal Government is in direct competition with Business and Consumer for Dollars. It is even worse when viewed as competition for Resources and Product. The current Economy is rapidly eroding Disposable Income for both Producer and Consumers, while the Federal Government refuses to fund it's expenditures through taxes. The result is huge Inflationary pressures in the Resources and Production markets, as Business and Consumers are crippled.
George W. Bush is the worst thing to happen to the American Economy since the Great Depression.
Lawrance George Lux