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Blogs by Lawrance G Lux
Presidential Responsibility 7/11/2004 9:06:48 AM
We hear and read a lot of commentary today about the lack of control over the Economy which a President actually possesses. This comes from a Republican base who desires to get George W. Bush reelected. This is a short summary of what the current President is, and is not, responsible for in the Economy.
George W. Bush has ruled a Presidency which has had profound economic effect. How has this effect been implemented? Here are the major ways:
1) the Tax Cuts: They provided more than half the Tax break to non-Consuming wealthy Households and Businesses, under the guise of fueling Investment and economic growth.
a) There was no discernable immediate or long-term growth in hard capital investment, though inflationary Paper instruments flurished.
b) Consumers found their Tax Breaks more than offset by increased State and Local taxes, so there was less than a twenty percent Consumption expenditure for every Tax dollar remitted.
c) Bush Tax Cuts allowed the same remission whether for Business expenditure was domestic or foreign. This Loophole allowed Outsourcing to proceed at full speed without inhibitation, based on no other Recardian advantage other than Wage differential. Every outsourced Job can, and should be, laid directly at the Bush economic policy door.
2) The George W. Bush educational law tripled the effective expense for Local School boards to get Federal aid. This meant higher Local and State taxes, whether School Boards met the Federal regulations, or did without Federal aid.
3) Bush's administration and Supporters pressured the Federal Reserve for the maintenance of low Interest rates and easy Credit extension terms, so Inflation is starting to increase significantly. This is not the major loss from this effort! The true loss comes in the huge number of American Consumers who are overextended without financial reserves, this applying to Homeowners more than any other segment.
4) Bush started a War which will eventually cost American Taxpayers over a trillion dollars, if it has not already; the vote is still out among Economists over this Issue. The Author tends to believe a trillion dollars has already been spent, once Secondary expenses have been accounted. The rationale for the Iraq War becomes less and less clear, while the Casualties mount. The initial Threat assessment has been proven wrong, the democratization of Iraq has been proven to be flawed, the previous Iraqi Government has been proven guilty only of Crimes against their own People, and the American national interest has never been propounded in an unflawed manner. The Death toll mounts, as Iraqi injuries, fatalities, and loss of livelihood and property rival the losses under the Saddam regime.
5) Bush has vastly expanded the National Debt, financing this debt with foreign Investors. The economic value of this Debt accumalation still remains obscure, one wonders how over a trillion dollars of Debt has no visable sign of economic accomplishment. The foreign Investment means the United States has become a Debtor nation to the World, when economic performance by American labor should propel visable increases in the standard of living. The Bush debt acheived as much for the American economy, as the Iraq War signified for American national security.
Most Americans, especially Conservative Republicans, consider my assessments of George W. Bush too harsh. We are in the process of choosing the nex President to lead Us. I am not thrilled by John Kerry, and never have been, his having an economic agenda I find also flawed. It is necessary to discuss pertinent issues, though, before judging which man to lead Us; knowing whatever man chosen will have the power to make things better or worse. lgl
