First, if the President has no impact on the economy (no one is ever claiming the president of the Fed has control) why sell the tax cuts to improve the economy? You can’t have it both ways.
Yes, there was a recession, which was not Bush’s fault, and it was one of the more minor recessions in memory. He can’t get credit for it being short either, because the tax cuts hadn’t cut in yet. So you can’t blame our plight on the recession.
9/11 was three years ago! It did hurt, for the moment, but no one is not going shopping today because of 9/11. Pitiful excuse.
Deficits and tax cuts, both, should help the economy. Deficits may hurt by decreasing liquidity, but with low interest rates there is no shortage of capital. In the long run we may get screwed, but that can’t be the answer.
So why should tax cuts help the economy? It puts more money in people’s pockets to spend. More spending, more demand, more need for production, more investment, more jobs, and still more money to spend. But these tax cuts put the money in the pockets of people unlikely to spend more. Yes, they might invest more, but if factories are not fully utilized, why expand them, why hire more people? So the tax cut, as lots of people said at the time, was misdirected.
As the recent report indicated, salaries have hardly kept up with inflation, not to mention the loss of jobs and the fear of loss of jobs. If people weren’t taking money out of their houses, it would be even worse. Low demand, low recovery.
We’ve also discovered that high health insurance costs have made employers less likely to hire people full time. (I know people kept at just enough hours to not qualify for benefits.)
You guys sound like Jimmy Carter, wringing his hands, saying that there is nothing that can be done. Bull. If Bush faced facts, if he had some competent advisors who face reality, not run on dogma, the unemployment rate would be way down.
At least you’re not claiming, like he is, that the economy is good. (Or turning the corner. :)) So now, just admit he screwed the pooch.