It's The Economy, If You're Stupid
You know the situation's getting desperate when the GOP decides it needs to point to allegedly strong economic performance as its main election argument. The idea here is supposed to be that a Democratic congress, by partially reversing George W. Bush's tax policies, would wreck the bountiful prosperity we're all currently enjoying.
This is, on its face, fairly absurd. By what measure has economic performance during the Bush years been better than it was before his policies were implemented? Jobs aren't being created at a higher rate. Wages are going up faster. The poverty rate isn't declining. The stock market isn't growing faster. What is it about the pre-Bush economic status quo that we're supposed to be afraid of? I don't see this working at all. The old GOP argument was that the economy was doing well enough that voters should focus on Republican national security policy and its vital role in keeping the country safe. Now it turns out that Republican national security policy is a bad joke and voters are supposed to be quaking at the prospect of a return to Clinton-era economic performance? I don't think so.
Comments
If you look at the record we actually had a much stronger economy in terms of real gdp, employment, etc., under Jimmy Carter then under Bush. The long run trend growth rate of the economy is 3.5%. Bush has been in office 5, going on 6 years and has experienced only one year of above trend growth.
I think you meant to say that wages are not going up faster.
Otherwise, you echo my thoughts whenever I see the Republicons trot out this line.
Well, after tax incomes for the top 1% of Americans were lower. That has to mean something. It should mean very little to the rest of America, but since more than 30% of Americans believe they will soon be in the top 1% of incomes, it has disproportionate sway.
This is part of a post-election strategy. "OMG, look what the Democratic 110th Congress did to our beautiful economy!"
To expand on the previous comment, many of the economics blogs (and most notably Nouriel Roubini) agree that we are going to see the mother of all recessions in 2Q2007. The cynic in me believes that, if the Democrats get the House and/or Senate, they will become the fall guy. This for a recession that was essentially caused by Greenspan's disastrous policies over the past 5 years.
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