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Bush assails 'income inequality'
Washington Times ^ | February 1, 2007 | Stephen Dinan

Posted on 02/01/2007 10:42:36 AM PST by Tolerance Sucks Rocks

President Bush yesterday said there is a growing "income inequality" gap between rich and poor Americans, and told companies they should rethink the giant compensation packages they offer top executives.

The markedly populist message, a divergence from the past, in which Mr. Bush has accused critics of practicing class warfare, was all the more noteworthy given his venue -- a speech at Federal Hall in New York, in the middle of Wall Street, the capital of capitalism.

But the president called for conservative market-based answers, including demanding that Congress renew trade-promotion authority, which allows him to negotiate trade agreements then present them to Congress in a take-it-or-leave-it fashion.

Mr. Bush said he expects a bruising debate before his current trade-promotion authority expires July 1.

"Bashing trade can make for good sound bites on the evening news," Mr. Bush said. "But walling off America from world trade would be a disaster for our economy. Congress needs to reject protectionism."

In what was billed as his update on the state of the U.S. economy, Mr. Bush took credit for the 2001 and 2003 tax cuts, promised to submit a budget next week that eliminates the deficit in 2012, and asked Congress to give him a version of line-item veto authority.

"When people across the world look at America's economy, what they see is low inflation, low unemployment and the fastest growth of any major industrialized nation," he said. "There is one undisputed leader in the world in terms of economy, and that's the United States of America."

But Democrats said Mr. Bush's rosy picture of the overall economy was out of focus.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Culture/Society; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: bush; ceos; charlesschumer; classwarfare; democrats; economy; enron; executivepay; freetrade; incomeinequality; politics; populism; tradepromotion; unions; wallstreet
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To: Tolerance Sucks Rocks
The rules of the free market, like the rules of gas physics, are based on statistics that assume a large number of elements without any particular distinguishing individual traits. In a small group where individual quirks can produce significant perturbations, the rules break down.

For instance, ordinary market economics predicts that efficient businesses will drive out inefficient ones. However, if there are two shops on an island with a hundred people, quirky circumstances (a few people have some emotional loyalty to the less efficient shop, the more efficient shopkeeper has a few annoying personal quirks that subtly drive people away, etc) can defeat that tendency.

Given the limited size of the population that has any realistic likelihood of getting a Fortune 500 board or CEO position, it's quite possible that similar factors (individual back-scratching agreements, old-boy network connections, etc) have the same effect.

61 posted on 02/01/2007 11:57:42 AM PST by steve-b (It's hard to be religious when certain people don't get struck by lightning.)
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To: Tolerance Sucks Rocks

>>President Bush yesterday said there is a growing "income inequality" gap between rich and poor Americans, and told companies they should rethink the giant compensation packages they offer top executives.<<

Do I need to draw you a picture, folks? The man has become a joke.


62 posted on 02/01/2007 12:00:22 PM PST by SerpentDove (It's not rocket surgery.)
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To: Jedi Master Pikachu

>>You disagree that some CEOs get paid too much, in some cases even when they do bad work?<<

Unless someone is a stockholder, why should it matter to them?


63 posted on 02/01/2007 12:04:57 PM PST by SerpentDove (It's not rocket surgery.)
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To: wjcsux

"However, this is a problem for the companie's Board of Directors, not the Federal Government."

Which is EXACTLY what Bush said. People would know that if they weren't so bust taking the liberal media as the honest to goodness end-all beart all truth without even a full quote from Bush.

FReepers are as quick as DUers to spout what the liberal media says if it fits their prejudices. FR has jumped the shark.


64 posted on 02/01/2007 12:07:09 PM PST by L98Fiero (A fool who'll waste his life, God rest his guts.)
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To: Tolerance Sucks Rocks
1. There's an income gap. Those who earn a lot earn more than those who earn less. TRUE.
2. The "gap" is increasing. TRUE. (Any proportional C.O.L.A. will do that. Any rate of inflation will do thata, too.)
3. This is a problem. FALSE. (As noted above, this is a natural condition of a healthy economy. The "gap" is growing in every nation on earth with positive economic growth.)
4. The Federal Government must do something to help "fix" the situation. FALSE.
5. Anti-capitalists use this gap as fodder for propaganda campaigns against the perils of free markets. TRUE.
6. While the President isn't explicitly calling the gap a "problem", he is helping the anti-capitalists in their emotional manipulation of the less-informed public. TRUE.
65 posted on 02/01/2007 12:07:43 PM PST by Teacher317 (Are you familiar with the writings of Shan Yu?)
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To: Tolerance Sucks Rocks
"President Bush yesterday said there is a growing "income inequality" gap between rich and poor Americans..."

I'm friends with an elderly Eastern European fellow who escaped from behind the Iron Curtain many years ago. He characterised Bush as a socialist a couple years back. Too bad, but it looks like he was correct. I voted for W twice, but I'm really starting to not like him anymore. That the state of American "conservatism" is a reflection of its leader becomes more apparent every day.

66 posted on 02/01/2007 12:08:10 PM PST by Sam Cree (absolute reality)
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To: SerpentDove

"The man has become a joke."

You are the joke. You bought this lie article hook, line and sinker. Bush never assailed income inequality. Not once. He also explicitly stated that it was not the government's place to get involved in corporate boardrooms.

Don't ever let facts get in the way of a good Bush-bash, eh. File over to DU where they gobble this liberal propoganda up. You guys have lots in common.


67 posted on 02/01/2007 12:11:42 PM PST by L98Fiero (A fool who'll waste his life, God rest his guts.)
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To: Tolerance Sucks Rocks

Excessive executive compensation bothers me, but not because I'm jealous (I am, but that's not my beef with it). I just don't feel that many companies (including ones that I indirectly own a piece of through mutual funds, and the one I work for) aren't getting good value for their money for what they pay in executive compensation. Big, successfull companies in Europe and Japan (for example, Toyota, Honda, Sony) seem to do just fine without paying their executives ridiculous amounts. Meanwhile, many executives get huge compensation and benefits (stock options, lump sum payouts, etc) while the companies they're paid to run do quite poorly.

But this is just one symptom of the dysfunctional business culture in most of the Anglosphere.


68 posted on 02/01/2007 12:12:53 PM PST by -YYZ-
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To: Madeleine Ward

That's what I usually do, for companies I own stock in that I can vote, I refuse to vote for big pay raises and write why in the comments section.

Annoyed was probably too strong a word. Let's say I find it "wrong" to pay people too much for their work, and I have no trouble with the President saying so, as long as he isn't advocating that the government do anything about it.


69 posted on 02/01/2007 12:14:25 PM PST by CharlesWayneCT
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To: CottShop
while employees are only getting a few thousand

A few thousand???...sheesh...I wish...i got a $500 bonus this year...and none the last two years...cause it was not my turn....my wife got a $75 bonus...wish I could see the mere pittance of a few thousand....

70 posted on 02/01/2007 12:17:59 PM PST by Getsmart64
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To: L98Fiero

>>Bush never assailed income inequality. Not once.<<

Really? I was just going by what the article said:

>>President Bush yesterday said there is a growing "income inequality" gap between rich and poor Americans... <<

By inserting himself and using his bully pulpit to make such a declaration, he exposed what he believes. He believes as President, that he needs to decry peoples' salaries, which are frankly none of his business, nor are they yours.

If he believes it is none of governments' business, why bring up the subject at all?

He is clearly pandering to the libs, and if you can't see that, there is not much hope for you.


71 posted on 02/01/2007 12:19:10 PM PST by SerpentDove (It's not rocket surgery.)
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To: Teacher317

6. While the President isn't explicitly calling the gap a "problem", he is helping the anti-capitalists in their emotional manipulation of the less-informed public. TRUE.

Well, you numbered the question and capitalized your answer so it MUST be true.

Get real. Bush is trying to encourage investment by presenting a picture of corporate America as honest and open. You haters make me sick with your lies and love of the liberal media when they flat out lie about Bush.

There's plenty of real stuff to hammer Bush about but NO you all have to snap up MSM lies like a starving mutt.


72 posted on 02/01/2007 12:19:29 PM PST by L98Fiero (A fool who'll waste his life, God rest his guts.)
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To: Tolerance Sucks Rocks
Bush...told companies they should rethink the giant compensation packages they offer top executives.

Why?

73 posted on 02/01/2007 12:21:03 PM PST by Jim Noble
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To: SerpentDove
If he believes it is none of governments' business, why bring up the subject at all?

Sitting here reading this thread I was thinking the same thing...what in the heck even brought this up?? I didn't read the article so I don't know if he was pandering or what....

74 posted on 02/01/2007 12:26:03 PM PST by Getsmart64
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To: livius

I don't know if you're kidding or not.

But there are some stocks in my portfolio where I'd vote for $1/year until I see some improvement.


75 posted on 02/01/2007 12:30:11 PM PST by proxy_user
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To: Leftism is Mentally Deranged

"Remind me again why I voted for him, twice."


gore/kerry.

LLS


76 posted on 02/01/2007 12:30:18 PM PST by LibLieSlayer (Preserve America... kill terrorists... destroy dims!)
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To: L98Fiero

"FR has jumped the shark."

Long ago.

LLS


77 posted on 02/01/2007 12:31:34 PM PST by LibLieSlayer (Preserve America... kill terrorists... destroy dims!)
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To: CharlesWayneCT

Then you are exercising the system as it should be.

If President Bush has a problem with executive compensation, let him purchase stock and do as you are doing.

I do have a problem with him talking about it. He sounds just like a Dem. It's exactly the kind of thing they bring up to try to drive wedges, create another 'victim' class, who they can then start to promise things to get their vote.


78 posted on 02/01/2007 12:32:28 PM PST by Madeleine Ward
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To: albie
Re: #37

Is it "stalinist" to make the observation that: "Some CEOs get paid waaaay too much, even if they do bad work"??

Bob Nardelli (Home Depot CEO) and his $210 Million exit package is a poster boy for this innocuous remark.
Home Depot Golden Parachute

79 posted on 02/01/2007 12:43:12 PM PST by El Cid (Seek ye the Lord while He might be found, call ye upon Him while He is near...)
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To: El Cid

"Bob Nardelli (Home Depot CEO) and his $210 Million exit package is a poster boy for this innocuous remark".


...you're right! The Government has the right to tell Bob Nardelli how much is enough.~sarc- We all make choices. (I know. That old argument again) Nardelli hiked sales from 45.7 billion $$ to 80 billion $$ in 2005!! He increased earnings per share by 20% annualized in the same year. HE built this company with his brains and business savvy. Just because you run the fertilizer department in store #1856 better than all 1960 stores, doesn't put you in the "share money with Nardelli" department. It's his store, he runs it as he sees fit. His employees always seem pretty happy to me when I go in there. They own shares and they get to take advantage of Nardelli's hard work and improved earnings. You have NO right, nor does the Stalinist I referred to earlier, to dictate what a private business does with thier money. Bush's "income inequality" gap speech is leftist rubbish! The Dem agenda is obviously class warfare and Bush seems more than happy to hop on the band wagon with them.


80 posted on 02/01/2007 1:46:54 PM PST by albie
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