Ailing Economy Needs A Dose of Bush Tax Cuts

Wall St Journal ^ | July 16, 2002 | RICHARD GILDER and THOMAS L. RHODES

[SJackson]

The U.S. economy is sputtering, we're in the worst bear market in 25 years, and the $3 trillion budget surpluses projected last year have morphed into $1 trillion of red ink. How does Capitol Hill respond? By debating how hundreds of billions of dollars should be spent on free prescription drugs for seniors, the most expensive new program since the Great Society.

[catch]

"Ailing Economy" needs Bush to step up to the plate and say something to the effect: I make no apologies for the fact that I've spent a number of years in the private sector - unlike many of my Democrat critics on the economy, who've spent their whole lives living off the public and never spent a day in what I would call the "real world." I make no apologies for the fact that I've had to meet payrolls, compete for new business, practice responsible customer service, and do the hundreds of other things that go into running a business. And now I'm drawing upon my business experience to develop economic solutions and hire other experienced business professionals to put them into practice - benefitting all Americans, and not using class warfare to drive a wedge between us.

That would be a start.

[Linda Liberty]

If Bush actually took their suggestions, he'd rise from mediocre to great. Seems like he learned his lesson on the Palestinians, so maybe there's hope. I don't see why a reasonable person couldn't look at things and say: these are obvious good ideas. Bush does have the capability, I think, to be that plain spoken, sensible leader.

But I'm not holding my breath. If he doesn't come with a repeal of the steel tarrif, tax reform, and major restraint on the hopeless runaway spending we are seeing from the republican congress, he will continue as the worst President since at least Jimmy Carter re: the economy. He'll also go down in flames. Right now, he's made a mess not only of the economy, but of homeland security as well. What's going on in the airports and the FBI is a bad joke.

[Timesink]

Man, can you just imagine the looks on the Rats' faces if Bush proposed this...

[ReleaseTheHounds]

Linda: Comparing Bush with Carter this early in his Administration is rather extreme, don't you think? Considering all the challenges he inherited from Der Schlickmeister, especially the terrorism and its aftermath, and the split Congress he's had to deal with, I'd say you would have to rate his first 18 months as rather admirable.

I'm far from pleased with how Bush has responded to the economy and the steel/timber tariffs. And his response on this crisis in confidence in the markets has been feeble.

I think this prescription would be a huge step in the right direction and I hope he steps up to the challenge. One of the best parts would be his admitting that the trade-protection policies were a big mistake. And then take on the Demos on taxes: make them permanent and accelerate all the new rates. Let the Demos argue the class-warfare stuff... it would show how out-of-touch they really are.

There have been times when GWB has seemed to be the second-coming of Ronald Reagan... and then he's seemed to be the second-coming of GHW Bush. We need more of that RR-side! And then you won't be comparing him unfavorably with Jimmy Carter.

[That Subliminal Kid]

Great post.

[dalebert]

Don't think this is the worst bear market but tax cuts would be nice.

[Wphile]

I say he should be bold and come out in favor of abolishing the current tax code and institute a flat tax. Eliminate all the frickin' loopholes that drive corporations to make decisions based solely on taxing incentives/disincentives. Allow the deductibility of dividends by corporations which will make corporations more beholden to stockholders via cash instead of the stock price.

In addition, abolishing the current code would significantly reduce the need for all the lobbying that goes on in Washington D.C. It's time to stop tinkering with the tax code and time to start over!

[Mudboy Slim]

"If Republicans can not or will not make this basic and populist argument for prosperity, then they do not deserve to retain the voters' trust again this November. If, however, President Bush were to invest his tremendous political capital here, he could deliver a knockout punch to the Daschle Democrats and return the U.S. economy to 4%-5% economic growth. Go for it, Mr. President!"

WOOOO-HOOOOOO!! I love it...MUD

[Mudboy Slim]

"Right now, he's made a mess not only of the economy, but of homeland security as well."

Nonsense, IMHO. I've got nothing against calling attention to Dubyuh's failing vis a vis his over-compromising with the Left, but you cannot sincerely say that anything Dubyuh's done has "made a mess of the economy." And Homeland Security may be temporarily messy, but this was a huge BureaucRATic mess when he took office as well.

FReegards...MUD

[gatorman]

Good Post!

Does anyone here have any confidence in Bush's economic advisors? Just hope they give him the correct advice.

The democRATs have found the smoking gun, it's the economy, for sure.

FRegards . . . gatorman

 

[cynicom]

Investors took a risk, lost money and now want government to in reality bail them out. Reminds me of the banks that loaned money to Mexico and tax payers had to bail them out.

[Linda Liberty]

We had little homeland security when Bush took office, but it had never been much of a problem. However, now its a focus, and we have a right to expect the Pres to get it right. The Buck stops there, and Bush is almost halfway through his term. You can't be blaiming the dems at this point.

What has happened? We're frisking Al Gore in airports, to look politically correct. The FBI still seems incapable of conceiving that our enemies could have been responsible for the anthrax. Things on this front could not possibly be worse run if Al Gore had won the last election.

A decent leader would have cleaned house at the FBI, and set up serious airport security along the lines of El Al, as opposed to just annoying people. He probably also would have instituted interrogation of foreign terrorists that employs drugs. Bush has not yet proved himself to be that leader.

And on the economy: Bush on his own initiative imposed steel tarrifs, which the cover story of the latest issue of Barrons points out is well on the way to igniting a trade war like we haven't seen since 1929, and is demolishing domestic industry as well. And he has done nothing but cheer as the congress spends faster than it ever did under Clinton or Carter. I can very sincerely say that Dubyuh's actions are a major reason why the financial markets have plummetted.

[cactusSharp]

if anyone is listening to Alan Andrea Mitchell Greenspan
,the dollar don says the economy is solid,rock solid.
In one after another democrat suggestion to new rules
and governance,Ole green thumbs says,thumbs down..no
dem help....on taxes,more cuts would help....yep he said it
of stock markets,great buys now,yep he said it too....of
the Euro championing the dollar,deniro don said pappycock;
a) who cares and b) fuzzy math only could say so. Asked,
by dems to compare the Euor / dollar and he ,in the Queen's
English ,of course,scoffed....yep..he did that too

Lastly,watch the cable sound bite that as Greenbugers
spoke,the mkt recovers while in the Dubya speeches it
tanks 400 points, yada,yada yada.

[Linda Liberty]

BTW, Gilder and Rhodes are wrong about one thing:
Bush should NOT "announce his intention to lift the steel and timber trade barriers at the end of this year".
If he did that, all construction would cease until the
end of the year as people wait for a 30% price drop,
further depressing the economy. Indeed, I expect a lot
of people are expecting the tarrif to be lifted
after the election, and are holding up orders now.
Bush should announce he is lifting trade barriers,
effective today.

[Mike Darancette]

"Ailing Economy Needs A Dose of Bush Tax Cuts"

See like Greenspan agrees.