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.
Pro-growth of what? Government? Economy?
Deficits, unemployment and corporate crime, all stock in trade of the Bush Economy.
You're not familiar with Gramm's or Armey's economic views, are you?
Yeah, right. Nice try there Murray Mom. It was government spending, at the hands of the democrats, that have brought about deficits. And I may I suggest you check the dates of when all this corporate crime occurred? Hmmm...seems to me it was during the 90s when your beloved clinton was at the helm and that snake Rubin was loving it up with all the crooks on Wall Street.
Give it a rest.
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.
Lindsey is a former supply-sider. If he were still one, the GOP pro-growth wing would have liked him.
That would be the economy! It should be pretty obvious to anyone who has paid any attention to either Gramm or Armey's politics.
They mean Club for Growth, growth of business.
Pro Growth of the economy, which implies less growth of goverment. Steve Forbes was on Radio and speculated that Bill Archer, who way the Senior Republican on the House Way and Means committee for years, may be the new Tresuary Secretary. WHile at Ways and Means Archer held hearings on Getting rid of the curent System and replacing it with a Flat Tax or a NRST. He also favored repealing the 16th Amendment. He was the only member of congress who filled out his own Income Tax forms each year.
He would be an excellent choice. It was also mentioned that Bush would be proposing a New Economic package on Dec 17.
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