Bush Message Wrong!

 

 

The economic guru’s working for President George W. Bush have been all over television telling me the economy is strong despite falling stock prices that haven’t been seen since the days of the “Great Depression.”  Rush Limbaugh and Larry Kudlow, highly respected conservative commentators, echo the contention democrats and the media are distorting our current conditions.

 

This is the road to disaster.  A loss of nearly eight trillion dollars of wealth is serious and telling the millions of voters who have sustained these losses there is no need to worry is maddening to them.  Moreover, because many of the losses are tied to corporate corruption and because George W. Bush is the first nominee for president since public campaign funding to opt for private, in his case read corporate funding, this corruption must be treated like Sadam Hussein with nuclear capability.  The Bush Administration has been late and looks like the media had to prod aggressive action.

 

But the worst mistake is failure to take action to restore the markets.  The connection between massive market capitalization declines and large layoffs is very clear.  In addition, the falling stock market has killed the venture capital industry, where Initial Public Offerings are the exit strategy for repayment of startup funding.  Without the market, fast growth companies and more importantly the jobs and taxes they create are not a factor in our economy.  The loss of this industry has gravely affected regions like San Francisco, Washington and New York.  The pain will spread widely as purchases of goods and services these companies once made are no longer a factor in the economy.  Whether you sell, service or make, software, hardware or even office furniture you have been hit by this crash.

 

The federal budget has quickly spun from surplus to deficit because of the lack of capital gains collected by the government and the fall in income tax as layoffs mount.  Rather than pretend there is not a problem, counting growth in the economy fueled more by the federalization of airport screeners than high profits in the private sector, the Bush Administration should be working to move the markets. 

 

How?  Simply trade the remaining income tax cuts for sharp reductions in the capital gains rates.  Democrats will fight this move because they stand to profit from the declining economy.  However, they fought the income tax cuts as an aid to the rich, slashing capital gains in lieu of keeping the income tax cuts shows the president can maneuver according to circumstance.  Let the Democrats oppose a plan to bring back the fast growth economy and the job creation that comes with it.  JOBS is the issue.  No jobs, no income taxes.  Bad market, jobs lost.  Make that simple case and George W. Bush is bullet proof, continue to argue the economy is good and Bush gets whacked in 2004.