This blog,originally founded by Blogger, who is listed in Marquis Who's Who and is a recipient of the Albert Nelson Marquis Lifetime Achievement Award. He holds a theological degree and a doctorate in Counseling Psychology. Taught Psychology for 32 years and is now Professor Emeritus. Is a board-certified psychologist and was awarded the Lifetime Achievement Award in his profession. Ministered as a chaplain, and pastored Baptist and Episcopal churches. Publications cover the integration of psychology and theology. Served in the Army, the Merchant Marines and the Peace Corps.

Thursday, May 13, 2010

Inheritance (part 2 of 3)

George Walker Bush

What did Bush do to help the economy after the bursted dot com bubble and resulting recession? He cut taxes quickly in June of his first year (and again later). That issue was his. He gave the surplus back to the people in the form of rebates. The result was record revenues and a very shallow recession. That was crucial in weathering the storms to follow.

What did Bush do to hurt the economy? He owns the big spending "Medicare Part D" (the only government program in history to come in under budget because of the private sector elements) and "No Child Left Behind". He never vetoed a spending bill.

War? Doesn't count... despite the constant whine from the left. There are several reasons. There was a threat and a Constitutional duty. There was overwhelming, bi-partisan support for both wars. There was overwhelming UN (world) support. There was a new paradigm after 9/11. Add to all that, the point is moot in regards to Obama because he's already outspent the wars and he's still prosecuting those wars.

TARP? At best that's a wash too. The bill was paid in two installments. Bush got the first and Obama the second. Senator Obama voted for it. President Obama gets to spend the $500 billion of TARP that's been paid back while Bush gets tagged with the deficit numbers of both installments INCLUDING the $500 billion.

What did Congress do? As mentioned, supported both wars and all the funding associated. After Democrats took control in 2006, spending went up dramatically. Congress put pressure on banks to give loans to people that could not pay them back to buy hoses they could not afford. More than anything else that legislation caused the banking crisis.

What happened independently and completely out of the control of the George W. Bush and Congress that affected the economy one way or the other? Just as the tax cuts were showing signs of stemming he inherited recession we were hit. 9/11 changed everything. They did not name the twin towers the "World Trade Center" for nothing. Devastation beyond words. Less than two months later the Enron scandal (and others) was uncovered. Yet we survived economically. The economy continued to grow and jobs continued to be created.

4 comments:

Sarkazein said...

Great article H.D.

Just to add to the tax increase/decrease question, Heritage Foundation has a good article.

guy faulkes said...

The problem with Bush is not with his tax cuts that increased government revenue. It is that he did nothing to curb spending. It does not matter what one's income is if he exceeds it with spending. The word budget means more than the amount you spend. It also means you should be careful how you spend.

bridle said...

Government programs such as the Community Reinvestment Act had strict guidelines to prevent the kind of risky lending that brought on the housing bubble. What happened was that banks, after repeal of Glass-Stiegel in 1999, had an incentive to take bigger risks to make more money. Because they could bundle and sell their lousy loans, they had no incentive to worry about the quality of their loans.
The end result of un-regulated capitalism is always a bubble, a monopoly, or a mafia.

Blogger said...

Bridle, it takes real hutzpa to post your two posts in tandem revealing the following:

“Within months, however, Paulson would witness the virtual collapse of the giant mortgage companies Fannie Mae and Freddie Mac and preside over their takeover by the federal government.

The episode sent shockwaves through the economy as confidence in Wall Street began to evaporate.” (This was Barney Frank and Chris Dodd’s government caused mess) From your link from spotlight on the economy.

Then you posted: “The end result of un-regulated capitalism is always a bubble, a monopoly, or a mafia.”

Do you want it both ways?