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Shahla
Money Managing Guru
Joined: 13 Nov 2004
Posts: 3324
Cash Points ££ 126163.28
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 Posted: Sun Jan 06, 2008 12:18 pm Post subject: Memory Lane and President Bush's US Tax Suts |
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By: Gerard_Jackson
As we enter the New Year I thought it appropriate to reflect on President Bush's tax cuts, the ones that the Democrats and their media flunkies screamed would wreck the US economy by generating an unsustainable deficit. It was easy — and still is — to spring to the conclusion that the Democrats' response was driven by opportunism and a deeply ingrained cynicism.
The Democrats also accused the President of playing politics with tax cuts. Of course he did. He would have been stupid not to. In any case, the charge was pretty silly coming from Democrats. What mattered was whether the cuts would work. They did. I also think deeper tax cuts would have worked even better.
What was really troubling were the stories that the President and his economic advisors thought that a huge and immediate cash injection into the economy was unnecessary to bolster consumption because of the extent to which investment fell after the 9/11 atrocity. Then there was the loss 1.2 million jobs because of the Clinton recession*. It's important to reflect on this line of so-called economic thinking regarding consumer spending because it is the reigning orthodoxy — except when a Republican sits in the Oval Office — in academia and the media.
http://www.marketoracle.co.uk/Article3228.html |
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