Posted on 12/06/2002 8:39:39 AM PST by CanisMajor2002
WASHINGTON, Dec. 6 (UPI) -- Treasury Secretary Paul O'Neill and White House economic adviser Lawrence Lindsey, architect of the president's tax cuts, resigned within minutes of each other Friday, officials said.
The resignations, effective in the next few weeks, came as the Labor Deparetment announced unemployment in November increased to 6 percent, the highest level in nine years.
It was not clear if the resignations were coordinated, related to the spike in unemployment or were requested by the White House.
"They resigned," White House spokesman Ari Fleischer said repeatedly when asked if the departures were part of a house cleaning.
"I've said everything I'm going to say" on that.
"The answer will always be the same. They resigned."
O'Neill has been a lightning rod for criticism by Democrats and others over an economy the president concedes is "bumping along."
"The data continues to be mixed on the economy," Fleischer said, and Friday's unemployment figure "was a setback" for positive trends, such as lower interest rates, low inflation and some growth in the economy.
President George W. Bush, while touting the positive, has repeatedly expressed in speeches his concern about stimulating the economy and creating job growth.
"The president very much appreciates the service of Treasury Secretary Paul O'Neill and Larry Lindsey," Fleischer said, and their contributions to getting Congress to pass tax cuts, new trade authority, terrorism insurance and other measures.
"They have both served the president ably and well in leading the nation from a period of recession into a period of growth," Fleischer said.
Fleischer said no successor for O'Neill was in place, but the president would look for a candidate with government and private-sector experience.
O'Neill was head of the industrial giant Alcoa when Bush tapped him to be his administration's first treasury secretary, largely because of his close relations to Vice President Dick Cheney and Federal Reserve Chairman Alan Greenspan.
Lindsey is a prominent supply-side economist who was appointed a Federal Reserve governor by the current president's father. Lindsey also played an important advisory role in President George W. Bush's 2000 presidential campaign.
Both men have been the focus of criticism from the GOP pro-growth wing for some time. Calls for O'Neill's resignation have built steadily almost from the beginning.
Early speculation as to their replacements is mute, but names frequently mentioned in the past include retiring House Majority Leader Dick Armey of Texas, former Texas GOP Sen. Phil Gramm and magazine publisher Steve Forbes --all favorites of the GOP's pro-growth wing.
Reagan did unmeasurable good to poor people and everyone else by growing the US and world economy. Bush Sr. threw it away so he could "govern" with the socialist beltway crowd. Newt and Kasich, though well-meaning, made a huge error. They were so afraid of the trickle-down tax cuts for the rich label that they changed from economic growth to "balanced budgets", obscuring the fact that it is growth, not tax increases, that balances budgets. Then Bush Jr. put forward a very modest tax cut plan, aimed at winning the election. He won, just barely, and deserves credit for his wisdom in picking a plan that would fly politically.
This is the moment of truth. If the president picks supply siders for Treasury and economic advisor, the Reagan revolution can begin again. If he picks beltway types, we will have years of slow growth and will be blamed for it at the polls. A strong economy would be the most powerful support for the war on terrorism. Please, Mr. President, bring on the growth economists! No country club Republicans! (end of rant)
Too bland and curmudgeony. I vote for Jack Kemp. Sound on policy and a great supplement to the "compassionate conservatism" schtick.
Don't you guys ever get tired of trying to re-write history? The economic downturn started on clinton's watch and that is a provable FACT. Hell, it was common knowledge during the 2000 campaign - it was in the papers, radio, and TV...you must have been out of town.
Ecomomic slumps cause deficits and unemployment, again, which began at the end of clinton's reign. The corporate crimes occured mostly through the 90's...during who's administration? They were exposed and are being prosecuted now by Bush's Justice Department.
You know what Murry? You've lost your monopoly on the media. Your revisionism isn't going to wash anymore. But keep carryiing the lib banner - it makes a nice target.
Steve Forbes would be a great choice, IMHO.
Quite -- but part of the question was, what was this "pro-growth" arm of the Republican party...is there an anti-growth arm?
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