“This might all be ancient history if the spectre of Supply Side economics had not reared its ugly head again once Bush II took office. In selling his $1.6 trillion tax cut-half of which went to the wealthiest 1% of Americans-Bush promised in 2001 that it would produce 800,000 new jobs. In fact, the economy has lost 2.7 million jobs since Bush took office, again, the worst economic performance since the Great Depression.
The effects of Bush's tax cut on the deficit and debt are exactly what we would expect having seen Reagan's results-only worse. Bush inherited from Clinton a fiscal surplus of $127 billion. In his first year he turned that into a deficit of $158 billion. In this, his second year, he will run a deficit of over $400 billion-a swing to the worse of over $600 billion in only two years.
Now Bush has sold us on still another megadose of this same Supply Side voodoo. Two thirds of his new $350 billion tax cut will go to the top 10% of income earners. Bush's Congressional ally, Tom DeLay, promises more such cuts for every year Bush is in office.
The long term effects of these policies are profoundly damaging. When Bush took office, the government's ten year surplus was forecast to total $5.6 trillion. This was critical to building fiscal soundness as the Baby Boomers begin to retire.
Now, the ten year forecast projects a cumulative deficit of $1.1 trillion, a net loss of $6.7 trillion in only two years. With the exception of World Wars, this is the greatest, most rapid destruction of public wealth in the history of the world.”
http://www.counterpunch.org/freeman05302003.html
2006-09-26
08:02:23
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