Bush Economy a Disaster

From Holden:

That seems to be the opinion expressed by the NYTimes. Today they take both President Drunken Sailor and Alan Greenspan to task for their poor stewardship of the U.S. economy:

What neither [George Bush nor Alan Greenspan] seems ready to acknowledge outright is that policy makers have run out of tools for stewarding an economy that – nearly three years into a recovery – has yet to flourish and may even be downshifting to neutral. The president’s fiscal policies, mainly high-end tax cuts, have resulted in a record federal budget deficit without spurring hiring or income growth. If Mr. Bush continues on the tax-cut path, continuing high deficits will further threaten job creation and living standards.


Mr. Bush and Mr. Greenspan have now exhausted almost all of their stimulus options. The economy is on its own, and it is not clear whether it is on track for a stronger recovery in the second half of the year.

They take a nice shot at Bush’s tax cuts as well:

The main reason for the crippling discrepancy is that the tax cuts were mostly handed out where they did the least good – that is, lavished on the people least likely to spend the largess. The reduction in the tax rates, the largest of Mr. Bush’s tax boons, provided only 59 cents of economic stimulus for every dollar of lost tax revenue. The tax cut for dividends and capital gains produced 9 cents of stimulus for every forgone dollar. (Did someone say, “Deficits as far as the eye can see”?) In contrast, the economic bang for a dollar of aid to state governments is $1.24. Yet such assistance accounted for only 3 percent of the total cost of Mr. Bush’s fiscal policies.