When George W. Bush took office in January 2001, he predicted a budget surplus of 5.6 trillion Dollars in next ten years, thanks to highly balanced fiscal approach of Clinton administration. Then he went on to give 1.3 trillion dollars tax cuts to the richest in United States, expecting that it would raise business investments and hence will improve the U.S. economy. This was when, the very conservative Fed chairman Alan Greenspan was forecasting a recession. Many experts, including, then treasury secretary Paul O’Neil opposed the proposal because it was projected to convert U.S. federal budget surplus into a budget deficit. But, Bush confirmed to the conservative ideology of trickle down economy and went on to make the cuts. Guess what? This Republican ideology faced a serious failure, again, as it has, repeatedly, in U.S. history. The result was that under Bush administration, despite, the most outrageous tax cuts for the richest, the economy grew with only 2.5%, which is considerably lower then the a long period of growth between 1949-2000, when taxes on richest were significantly higher.
When he took office, the Dow Jones industrial average was at 10,587 and when he left it was at 7,949. This is how much the investments grew, because of the largest tax cuts for richest in U.S. history, a whooping -24.917% growth in stock market? Congratulations my Republican friends, trickle down economy really works. You wish! right? Don’t forget that these largest tax cuts for richest, which were supposed to increase investments and spur the economy, also resulted into the great recession of 2007-2008, when assets of worth 15 trillion dollars disappeared in thin air overnight, millions of people lost their lifelong and retirement savings, millions jobs were lost, U.S. trade deficit rose to record levels and Dollar declined to lowest levels in history. This most conservative government in U.S. history, also increased regulation on Fannie Mae and Freddie Mac while it was trumpeting for free markets, less regulations and smaller government. Bush administration also implemented the largest bailout for world’s richest private enterprise, mostly Wall Street insurance companies and banks, with tax payer’s money, obviously, with no constitutional authority, to do that. It was and still is the worst financial crises in U.S. history since great depression. That’s how good the biggest tax cut for the richest worked! Republicans, who are still against the repeal of these taxes, in spite of the record U.S. deficits and foreign debt, mostly from countries like China, about which nobody knows how friendly they really are, I have to ask them one question. Do you have any shame left? Are completely blinded by the campaign financing that you get from richest and most powerful lobbies of these financial institutions?
Worst of all the Bush administration and congressional Republicans kept blocking and opposing the hearings related to this biggest rip-off of tax payer’s money by the world’s largest and richest corporations. I cannot believe that millions of Americans still support these crooks. At the same time while Bush administration was giving away the trillions of dollars of tax payer’s money to the richest, it vetoed State Children’s Health Insurance Program (SCHIP), which would have expanded the healthcare benefits to six to ten million kids, from low income families. Also, while it was undeniably proved by the widespread and deep mortgage, and Wall Street fraud, that big Wall Street corporations cannot be trusted for critical personal and private investments and savings, Bush administration was pushing for privatization of Social Security and Medicare.
Bush administration , also, seriously hurt U.S. economy by pulling us out of environmental accords like Kyoto protocol. These actions thwarted U.S. ingenuity, creativity, innovation and invention in green technologies, while China, India, Germany, Brazil and Scandinavian countries were reaping all the rewards. Restrictions on stem cell research, although even opposed by people like Nancy Reagan, was another blow on U.S. pharmaceutical research and development, while foreign companies were getting ahead of the curve and we were being left behind.
It looks like that Bush and his administration did not understand the creative, innovative and inventive mind at all. No child left behind, by it’s vastly exaggerated stress on tests and scores, was another Bush administration initiative that played a big role in killing the creativity and innovative skills in our young and growing, kids and students. Bush administrations serious failure in dealing with hurricane Katrina and it’s victims, made another serious hit on economy. The slowed rehabilitation of businesses and residents in effected areas, caused a very serious economic and financial damages.
It always looked like that Bush administration was highly charged with politically and ideologically extreme ideas. That administration always put the ideological and party interests before interests of the nation and country. Another proof of this extremely ideological polarity of administration was provided by the politically and ideologically charged midterm firing of U.S. attorneys, in the middle of all that chaos, just adding up to it.
Bush also awarded Presidential Medal of Freedom to Pope John Paul 11, head of Catholic Church, which constantly and consistently opposes, as a policy matter, the women’s rights, gay rights, drug use rights and prostitution. Hence, it is largely responsible for diverting highly valuable economic activity from law abiding citizens to the criminals and gangs. This opposition and denial of basic human rights also diverts the precious tax revenue from governments to traffickers, and powerful and rich mafia. Many people strongly believe that religious groups like Catholic church, conservatives and Republicans have deep and strong financial ties with these rich and powerful criminal groups and mafia, and they get lots of election campaign funding and donations from these criminals as a reward for opposing the legalization of these valuable economic activities, and hence keeping the prices high for abortions, same sex sexual activity, drugs and prostitution in many countries, where one or more of these are still illegal, mostly due to opposition from religious activists, and powerful and rich lobbies funded by drug and prostitution gangs. My dear friends, my hopefully thought provoking question to you is; if you are not totally blinded by conservative and religious ideology and your loyalty to Republican party, can you still blame Obama and Democratic party for our current economic, financial, business and employment relate issues?
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Read our articles Global Recession: Causes, Consequences, Fixes, Part 10 And Global Recession: Causes, Consequences, Fixes, Part 12
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Very wonderful post about the global recession. Thanks.
Raquel