Tuesday, December 18, 2007

What is wrong with the Bush Economy?

Not much. The economy as a whole is doing well. That isn't to say the same can be said for his handling of the budget. When it comes to spending, he is worse than any liberal we have had. Historians will look back on his administration as the "if only" administration. If only he could have been fiscally conservative instead of a Keynesian liberal. Tax cuts saved the US economy from his big spend policies. Enough of the criticisms.

Unemployment rates of 4.7% and an increase of 4.9% GDP in the 3rd Quarter 2007. Clinton could only be so luck, and all this during a war in two countries. So why is there so much talk about the negatives. For one, it is election time, so with the war going better, the media has to have something to beat republicans up about. The key to their argument is two fold. Credit crunch and mortgage crisis. Both of these factors are negative, but they have nothing to do with any Presidential administration.

The credit crunch and mortgage crisis are problems that started decades ago and are only related to irresponsibility of the individual. The government didn't make people buy junk on credit cards, financed over 20 years at 19% interest. The government didn't make people sign up for Adjustable Rate Mortgages and didn't make lenders sell sub prime loans. Because it is election time, it has all of the sudden become governments problem and that means they will be asking us all to pony up some money to pay for other's poor choices.

The problem with debt has come home to roost with each debtor. It is paralyzing and life changing to live under the cloud. We have become a society of slaves living in a free nation. We may are the first society to willing give up our freedom so that we can have a bigger TV, nicer clothes, or a better car. We lost it first to the banks, but once government steps in, we will lose even more. Did Bush cause this? No. It is only that he happens to be President at the time it seems to be getting worse. My prediction for 09 is that if a Democrat wins the White House, the credit crunch will be put on the shelf, like the homeless problem was for Bill Clinton. If the Republicans win in 09, the coverage of the credit crunch and mortgage crisis may even overtake the coverage of Global Warming.

After losing, Hillary will follow Al Gore's foot steps and win a Noble prize for economics after her movie "An inconvenient Economy" is widely hailed by the media. She'll be on Oprah, No, she won't be on Oprah. Barack won't have any of that.

Cut up your credit cards and act your wage.

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