From the San Jose Mercury News:
Standing in front of thousands of tax-refund checks that soon will be in mailboxes across the country, President Bush defended his economic policies Thursday and declared that "better days are ahead" for Americans.In the first of a series of events intended to shore up confidence in the economy and his stewardship of it, Bush visited a Philadelphia facility that has been working overtime to produce the tax-cut checks that Congress approved earlier this year. On Friday, the first wave of about $12 billion worth of refunds will be mailed to 25 million families who qualify for the new $1,000-per-child tax credit, which Bush and Congress expanded in May from $600 per child.
Watching Bush blow $12 billion doesn’t exactly shore up our confidence in the economy, and it certainly doesn’t do anything positive for our thoughts on his stewardship of it.
The budget deficit forecast for the current fiscal year is a staggering $455 billion, which means that the federal government is spending nearly half a trillion dollars more than it expects to make in one year alone. The $455 billion is 50% more than what the White House projected it would be last February.
Nevertheless, new White House budget director Joshua Bolten says not to worry: “The U.S. economy is poised to return to healthy, sustained growth….There is a substantial stimulative effect to the tax cuts that have been introduced.”
Well. The only stimulative effects from the tax cuts introduced thus far by the Bush administration have been to his poll numbers, which are stimulating downward, and to the lavish efforts made to produce picture perfect photo opportunities. Bush’s $400 checks may make voters happy because they can pay off some debts or buy a new fridge, but they aren’t going to get the behemoth that is the U.S. economy moving again.
And as we stagger under the weight of even more debt, listening to Bush tell us that everything will be fine, we have the sneaking suspicion that “better days” are simply not what’s ahead for America.
But the jobless rate might be starting a decline (as mentioned in the article linked to below), apparently right around the same time that people are starting up their anticipatory purchases (buying on credit to be paid off with the impending tax refund check).
So either the tax breaks are working, or people are hitting the end of their unemployment benefits and are giving up, no? Either way, it'll be quite the coup if the economy starts to recover as GW's first term draws to a close.
Posted by: Eric on July 25, 2003 08:13 AMI would love nothing more than to see this "war" end and the economy pick up again. And while the majority of the people said the president is "doing a poor job of handling the economy, and just four in 10 (40%) say the U.S.-led military campaign in Iraq has been a success" we should be more concerned with the final statistic: 66 percent, said Bush is very or somewhat likely to win the election regardless of how they cast their vote.
This shows a complete lack of confidence in the American people. It's like saying that even though we're dissatisfied with how things are being handled what's the point. He's going to be reelected whether or not I vote against him. Right now THAT frustrates me more than anything.
Posted by: Ed on July 25, 2003 10:22 AMThe only problem with your whole theory is the economy IS improving. And the deficit you rant about? How many democratic pork projects are part of that? The farm bill comes to mind. So does this universal drug program you push.
Permanant tax cuts stimulate the economy. Creating huge bloated assistance programs to make the public dependant on the government does not.
Posted by: Kevin on August 2, 2003 02:26 PMSomehow I don't think tax cuts that only benefit the rich are stimulating the economy. Especially when these tax cuts are accounting for 36% of the deficit.
Posted by: Michell on August 26, 2004 02:57 PM
