Bush's Real Record
INVESTOR'S BUSINESS DAILY

Posted 1/31/2007

Economy: The mantra among critics of President Bush is that he's been "incompetent" as chief executive. To which we respond: Looked at the U.S. economy lately?

In his "State of the Economy" speech Wednesday, Bush expressed justifiable pride in his economic accomplishments. Our good friend Larry Kudlow keeps calling it "the greatest story never told." And indeed it is.

The Bush-is-a-failure mantra is, quite simply, out of touch with reality. What the economy's done in the past six years, especially in view of what Bush faced on entering office, has been nothing short of remarkable.

Remember that first bleak week, way back in January 2001? The economy was in a free fall, with job growth having peaked in mid-summer 2000. During Bush's first quarter in office, the economy actually shrank.

This wasn't surprising, given the Fed had been ratcheting up interest rates for two years and the stock market had just suffered its biggest meltdown. Americans took a $7 trillion hit from that debacle, and some feared we might even slide into a depression.

Then came the first attack on U.S. soil since Pearl Harbor, killing 3,000 people, costing $100 billion in direct costs to the economy and untold billions more in indirect costs, and damaging the national psyche. People stopped flying and buying. They cocooned.

It was the worst first year for a president since FDR. But Bush turned a potential disaster into one of the success stories of the post-World War II era. Yet few credit him for it.

His three tax cuts pushed 5 million mostly low-income families off the tax rolls and substantially shifted the tax burden toward the rich. Despite harsh criticism, the cuts revived the economy.

Where are we today? "Across our nation," Bush said Wednesday, "small businesses and entrepreneurs are creating millions of new jobs. Retail sales are up, consumer spending is strong, exports of goods and services have jumped by nearly 35%. The Dow (industrial average) has set records 26 times in the past four months. Productivity is strong, and that's translating into higher wages."

Every word true. And yet, our newspapers and TV talking heads are obsessed with stories of mass "inequality" and "middle-class squeeze" and "jobs shipped abroad" and "falling behind."

Reality is quite different, of course. But reality can never be permitted to get in the way of Bush-bashing — the stock in trade of the mainstream media and their allies in the Democratic Party.

So what's the real record? Since Bush's tax cuts took effect in mid-2003:

• Real gross domestic product is up to $1.33 trillion, or 12.6%.

• Existing businesses have hired 5.9 million workers (not counting the millions of jobs entrepreneurs have created).

• Corporate profits have soared 91% to $1.6 trillion.

• Tax receipts have leapt $503 billion, or roughly 1.1 percentage points of GDP, refuting the notion the tax cuts "caused" deficits.

And thanks to rebounding stock prices and huge gains in home values, Americans' total wealth has soared 39% to $54 trillion — the biggest expansion ever.

After such a stellar performance, a breather — what economists call a "midcycle correction" — would be in order. Yet the economy continues to power ahead.

In 2006's final period, GDP growth was 3.5%, and it has averaged 3% since the tax cuts. Real wages rose 1.7% in '06, much faster than the 0.3% average of the Clinton years. In just the last 12 months, unemployment plunged from 5.0% to 4.5%, near postwar lows.

More of us have jobs, own homes and businesses, and work for higher pay than at any time in history. We're the richest people on earth. For a change, let this story be told.


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great read steve.... I wonder why the MSM doens't tell americans this....

Gix, you already know the answer to that question. It doesn't help their goal politicaly.

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An American first and always a Conservative.

God forbid the far-left had anything good to say.

I heard a report on this tonight, on tv so I don't have a link-but it did say that the average americans savings is historically low. Now before you jump on me the report did not take into account social security, 401K, or home ownership. With these taken into account, I can understand why fewer Americans are saving, because I think (just my opinion) they are investing instead.

i wonder if the report also stated that americans are making more then ever

Hmmm...which Americans?

I think, while people may be benefitting from homeownership, after talking to the general public, many people feel that their expendable income is much lower. They are feeling a pinch. I converse with alot of retirees, and I think that they are feeling it the most. And the restaurant business is a very good business to gauge this. One of the first places they cut will be eating out and tips.

Wal-mart complained about their sales this last shopping season. But some of that could be attributed to bad press and the fact that they no longer will be doing lay-a-ways. Their very base depends on being able to pay things over time and many can not qualify for credit. If I have to pay cash up front, in many ways I figure I might as well be shopping somewhere else.

Depends on what part (region) of the country too, and what sector...

Yes Exxons economy is doing fantabulous.
The largest profit in the history of the human race, for one corporation.
http://www.nationalledger.com/artman...72611336.shtml

The rest not so good.
http://www.msnbc.msn.com/id/16927195/
Whatever the cause, the result is a widening gap between the richest American and the average worker, even with a strong job market.
“The top 20 percent is doing fairly well, and the bottom 20 percent is doing better,” said David Wyss, chief economist at Standard & Poor's in New York. “If there's a hole, it's in the middle, which frankly are those old blue-collar jobs that the Democrats say are leaving the country. And they're right."

Ya it's great if you are in the club.

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