Republican Economic Insanity

December 30, 2003

Much has been said about the economic recovery we are currently experiencing. Republicans like to say the recession is over because some business indicators are up, the stock market is much better, and new jobs have been created. 

How can the Republicans ignore the billions lost in savings and retirement accounts in the past three years. Or how about the additional two million unemployed?

Certainly the economy has rebounded in a couple areas but the following issues must still be resolved for us to have an economy as strong as before the Republicans took over the government::

1. We have a soaring deficit that is the highest in history.  If the "government" continues to spend couple thousand more per household than it did in the 1990s, then taxes must eventually rise by a couple thousand a year per household. A deficit is a debt and we must eventually pay it with tax increases in the future.

2. Discretionary spending has more than doubled since Republicans took over. Now, under a Republican White House and Congress, discretionary spending is averaging about 7.5  percent. (This does not include military spending)

3. The "job recovery" this fall has been limited to part time and minimum wage jobs with a significant number related to the holiday season. A hollow economic victory. All the while, U.S. companies are quietly preparing to send good paying American jobs to other countries like India and Pakistan. Thousands will loose their jobs very soon.

4. The Iraq War has an open-ended budget and the price tag continues to rise. Plus, Bush cannot get other countries to help with the costs so Americans must foot the bill now or later as tax increases.

5. Tax increases have been hidden in unfunded mandates from Congress and the Administration. For example, most of the costs for the "No Child Left Behind" program were passed onto the states. In response they had to significantly increase taxes in 2003.