Bush Takes Credit And Points To His Policies As The Cause For The Economy

[Median Democrat]

Of course, this was back in 2006 when the Fed was slashing interest rates to four-decade lows to spur consumer spending. Of course, this caused the dollar to later plunge, and oil prices to sky rocket, and all this easy money triggered the mortgage crisis . . . well you know the rest. Still, its interesting to read about George Bush thumping his chest and taking credit for the temporary blip of economic growth based on heavily leveraged money:

* * *

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/16/AR2006101601121_pf.html

"With great fanfare, President Bush last week claimed credit for a striking reversal of fortune: New figures show the federal budget deficit shrinking by 40 percent over the past two years, a turnaround the president hopes will strengthen his push for further tax cuts.

Bush hailed the dwindling deficit as a direct result of "pro-growth economic policies," particularly huge tax cuts enacted during his first term. "Tax relief fuels economic growth. And growth -- when the economy grows, more tax revenues come to Washington. And that's what's happened," Bush said."

[Zynx]

1. In 2006 the Fed had just finished hiking interest rates to 5.25% if you llok at the numbers.

The housing bubble was arguably brought to a close by those hikes.

[Median Democrat]

3. True, the Article Notes...

the following:

"The White House successfully pushed tax cuts in 2001 and 2003, partly as remedies for an ailing economy. At the same time, the Federal Reserve slashed interest rates to four-decade lows to spur consumer spending. The economy gradually gained steam, growing at a faster-than-average pace of more than 3 percent in 2004 and 2005. The housing market took off, corporate profits surged, the stock market rebounded and many upper-income Americans pocketed big gains."

[aint_no_life_nowhere]

2. Lower interest rates and tax cuts seem to have been his only economic policies

I wonder how much his promotion of low interest rates has been spurred by his desire to borrow money to fund his wars and to make up for the lost revenue from his tax cuts? I'm not sure if the two are tied together but I haven't seen anything on it. If true, then it would constitute a hidden tax on the American people.

[LaStrega]

4. "... strengthen his push for further tax cuts."

Yeah, for the uber-rich.

[Median Democrat]

5. Here's John McCain In 2007 Praising Those Tax Cuts

And singing the supply side gospel. Of course, things have not quite worked out according to plan since then:

http://www.factcheck.org/taxes/supply-side_spin.html

At the May 15 Republican presidential debate, Arizona Sen. John McCain was asked about his opposition to President’s Bush 2001 tax cuts. (Also, the senator voted against the 2003 tax cuts.)


Fox News Channel's Wendell Goler: Sen. McCain, you opposed President Bush’s 2001 tax cuts. Now you say you were wrong. How can you convince Republican voters you will push a Democratic Congress hard enough to make those tax cuts permanent, sir?

Sen. McCain: Well, first of all, I didn't say that I was wrong. I said that the reason why I opposed those tax cuts was because we didn't rein in spending.
And the fact is the tax cuts have dramatically increased revenues.

Earlier this year in a National Review interview published March 6, McCain said tax cuts in general created revenue gains:


National Review’s Ramesh Ponnuru: If you could get the Democrats to agree, or at least to come to the table on entitlements or on tax simplification, are those circumstances under which you'd be willing to accept a tax increase?

Sen. McCain: No; no.

Ponnuru: No circumstances?

Sen. McCain: No. None. None. Tax cuts, starting with Kennedy, as we all know, increase revenues. So what's the argument for increasing taxes? If you get the opposite effect out of tax cuts?



Other Republicans and administration officials, including the president, have made similar statements about the power of the 2001 and 2003 tax cuts. But McCain and his colleagues are not accounting for the decrease in revenue that accompanied the cuts.

[LaStrega]

7. "And the fact is the tax cuts have dramatically increased revenues."

Aaaaarrrrrrgggggggggghhhhhhhhhh!

I cannot believe people are buying this bullshit! Not even freeps!

[RC]

8. Tax cuts for the government is like you taking a cut in pay so you can live higher on the hog.

[jazzjunkysue]

6. Please, God: Don't let George "help" the economy any more.

He's "helped" enough.

[Bobbie Jo]

9. Heck of a job * nt