The Damage of the Bush Economic Policy and what we should do to fix it

The Bush Tax Cuts Turn 10; Let’s Look At the Damage They’ve Caused | | AlterNet.

On the tenth anniversary of the Bush Tax Cuts I’m going to go through the consequences. Of a Supply Side Borrow and Spend Economic Policy and a Neo Conservative Foreign Policy. Not to mention a Cowboy Economic Policy when it comes to regulation. Just like the War in Iraq, the Bush Tax Cuts that yes did cut taxes for everyone but under False Evidence. That there would be a 2T$ Federal Budget surplus, that never materialized. Partially because of the recession of 2001-02 and of 9/11. But also because of the War in Afghanistan that almost ten years later we still haven’t paid a dime for. Not to mention the War in Iraq that now eight years later we still haven’t paid a dime for. And of course Round Two of the Bush Tax Cuts in 2003. That wasn’t based on any Budget Surplus, the Bush Administration already new that we were in the hundreds of billions of dollars in deficit. It was another Supply Side Tax Cut, the theory being that Economic Growth would cover the Tax Cuts. And then the Medicare Advantage plan in November of 2003 that once again was not paid for. The two wars together are now around 3T$ again all borrowed money. The Tax Cuts are another 2T$ again all borrowed money. The Medicare Advantage plan another 500B$ of all borrowed money. Not regulating the Banking Industry resulting in the Financial Crisis of late 2008 which led to our “Great Recession”.

Those who’ve been against the Bush Tax Cuts from day one, have made the argument that they haven’t worked. So we should repeal all of them. They are too expensive, so we should repeal them. The Tax Rates during the Clinton Administration of the 1990s are better because we had a better economy then. So we should repeal all of the Bush Tax Cuts. The what I would call the socialist House Progressive Caucus in their Budget Plan back in April, repeals all of the Bush Tax Cuts including the Tax Cuts for the Middle Class. Actually increasing taxes on people who can’t afford a Tax Increase right now. People they say they are fighting for in what they call the “Peoples Budget”. The main problem with that argument, is that we obviously don’t have the same economy in 2011 that we did in 1998. So passing a solution that was designed for one time using it for another. Simply doesn’t work, you have to examine each situation for what it is and address it that way. And then not using those Tax Hikes to pay down the deficit and debt. But more Federal Government spending. So you have Cowboy Economics coming from the Far Right. And Socialist Economics coming from the Far Left. Thats not a choice but examples of what not to do.

What we should do and what President Obama should be doing, as only he can do as President. As the only person in America with a Bully Pulpit, is to push an Economic Agenda that puts people back to work and paying taxes again. That alone would help with our deficit and debt. For this to happen we are going to need solid Economic Growth much better then the 1.8% we have now. And Tax Hikes on the Middle Class who can’t afford them doesn’t accomplish this. Because they would then have less money to spend. So what the President and Congressional Democrats should be doing is pushing an Economic Agenda that leads to Economic and Job Growth. They can do this through Infrastructure Spending with an National Infrastructure Bank that would pay for itself and fiance much needed Infrastructure Projects in the hundreds of billions of dollars. A National Energy Policy that gets moves us towards Energy Independence and off of Foreign Oil. By promoting our Natural Resources including Alternative Energy. And Education Reform Policy that rewards good teachers and promotes School Choice in our Public Schools which brings in competition. As well as a better Financial System so all of our Public Schools can have adequate resources.

And then of course there’s that 1.6T$ Budget Deficit and 14T$ National Debt that we must pay down. We have to address this as we are rebuilding our economy. We can do this by reforming our Entitlements Programs, so that White Collar workers work longer and pay more into the system and collect less if anything. Reforming our Social Insurance programs and design them to move people to Self Sufficiency so they are no longer collecting from them. Reform our Defense Department and stop defending Developed Nations around the World that can afford to defend themselves. And demand they play a larger role in their own National Security. And use those resources to pay down our deficit and debt. Tax Reform so we are taxing more things but at Lower Rates. And eliminate Corporate and Agriculture Welfare. And finally but never least Tax Hikes on High Earners who can afford to pay them. And use that revenue to pay down our deficit and debt.

The Bush Economic and Foreign Policy has done a lot of damage to our economy. And we are not going to recover from it overnight. But we can get pass it by rebuilding our economy, paying for things again, reforming the Federal Government and demanding more taxes from those who can afford to pay them.

 

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About Derik Schneider

Blogger on everything that interests me and that I'm knowledgeable about.
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