It it’s important, the President will tap dance. January 28, 2007Posted by Jim Satterfield in Economics, Politics.
The New York Times notes that President Bush is taking credit for huge decreases in the deficit, crediting it all to his tax cuts. Recessions happen. Recoveries from recessions happen. When those recoveries occur budget deficits go down. While it is possible that the right tax cuts to help dig out from a recession most of the Bush tax cuts weren’t the kind that accomplish that. And even if they were it appears that the magic is wearing off. Increasing deficits won’t help our long term economic look out. There aren’t enough politically palatable spending cuts to accomplish the necessary reductions, either. So given the nature of President Bush the question becomes whether or not the next President will have the courage to be honest about what’s really good for our country’s future. I have my doubts.