Not to mention defense cutbacks. I guess the bottom line is that outside very broad macro components, such as a functioning legal system that protects private property, capitalism is left up to the market. Since innovative people don't like sitting around, they are left to creating new gadgets, entertainments, etc. Demand by others creates money supply growth, and viola, we're off to the races...
The really amazing thing about all this, though, is that the Bush economy has survived the record high oil prices, at least so far.
I give credit to Bush on that. If he'd adopted some of the nutty ideas the demogogues have thrown out, we'd be doing a re-run of Nixon, Ford and Carter.