"I think when people take a look back at this moment in our economic history, they’ll recognize tax cuts work.”
--The Worst President Ever
He's the most clueless president we've had in a century.
The idea that tax cuts are the key to a healthy economy is in the process of playing itself out. Except for disinvesting in the nation's infrastructure and increasing the divide between the rich and poor, tax cuts haven't done anything for the economy.
Still, the fault with today's economy lies not so much with The Worst President Ever or his tax cuts as the short-term thinking of Republicans and neo-liberal Democrats.
He Who Must Be Read says that the current economic mess isn't the fault of The Worst President Ever. Mind, you, he didn't do anything to help, but the actual causes of the current crisis date back farther to the short-sighted energy and health policies of 1990's:
At the top of my list of causes for the lousy economy are three factors: the housing bubble and its aftermath, rising health care costs and soaring raw materials prices. I’ve written a lot about housing, so today let’s talk about the others.
One of the underemphasized keys to the Clinton boom, I’d argue, was the way the cost disease of health care went into remission between 1993 and 2000. For a while, the spread of managed care put a lid on premiums, encouraging companies to expand their work forces.
But premiums surged again after 2000, imposing huge new burdens on business. It’s a good bet that this played an important role in weak job creation.
What about raw materials prices? During the Clinton years basic commodities stayed cheap by historical standards. Since then, however, food and energy prices have exploded, directly lopping about 5 percent off the typical American family’s real income, and raising business costs throughout the economy.
Much of this pain could have been avoided.
If Bill Clinton’s attempt to reform health care had succeeded, the U.S. economy would be in much better shape today. But the attempt failed — and let’s remember why. Yes, the Clinton administration botched the politics. But it was Republicans in Congress who blocked reform, as Newt Gingrich pursued a strategy of “coagulation” designed to “clot everyone away” from Mr. Clinton.
As for high food and fuel prices, they’re mainly the result of growing demand from China and other emerging economies. But oil prices wouldn’t be as high as they are, and the United States would have been much less vulnerable to the current price spike, if we had taken steps in the past to limit our oil consumption.
Mr. Bush certainly deserves some blame here, and not just for his destructive embrace of ethanol as the answer to our energy problems. After 9/11 he could easily have called for higher gas taxes and fuel efficiency standards as a national security measure, but the thought never seems to have crossed his mind.
Still, in energy as in health care the biggest missed opportunities came 15 or more years ago, when Mr. Gingrich and other conservative Republicans in Congress, aided by Democrats with ties to energy-intensive industries, blocked conservation measures.
So here’s the bottom line: Mr. Bush deserves some blame for the poor performance of the economy on his watch, but much of the blame lies with other, earlier political figures, who squandered chances for reform. As it happens, however, most though not all of the politicians responsible for our current economic difficulties were Republicans.
--Mb