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.
Dumbya is kinda slow, just like the Dems say, isn't he? It took Clinton only a year to turn around the $290+ billion deficits, skyrocketing unemployment, and stagnant DJIA he inherited from Dumya's daddy. When Clinton left office the DJIA was regularly setting records, unemployment was less than 5%, and the world was at peace.
Prediction: 2 years from now the Bushies will still be blaming Clinton for the abject failure of their wild economic schemes, failed domestic policies, and unthinking foreign adventures. Don't forget it's been 494 days since Dumbya promised he would get OBL "dead or alive".
Maybe Kudlow should run for President instead. A little coke use didn't hurt Dumbya's chances in '00, did it?
ROTFLMAO!, Perhaps he is slow but he sure managed to clean the rats clock last month didn't he? Just for the record, the deficits began dropping after the GOP congress was put in place, BTW Clinton inhereted an economy that was growing at 5%/yr the 2 quarters BEFORE his sorry butt was inaugerated. You make this too easy, now back under your slimey rock ;-)
Ahhhh yes.The least of Clinton legacy of death and dispair. Good you brought that up. Bush has a lot of work to do to fix that. What a bloody mess !
Thank God for Reagans trickle down tax break and the end of the cold war. Did Clinton walk right into an inheratance, or what? He was givin a gold mine! Too bad he blew it. What a waste of a presidency he was.
As MurryMom states as she is "relaxing" in the hillary spa mudbath, with her eyes covered with cucumber slices that were sensuouly handled by william jefferson clinton.
My guess based on the inordinate amount of discussion of these resignations that many bosses in the government and press sector tolerate substandard performance.
Thankfully, President George W. Bush has been in corporate America and knows the rules for success.
Reuters, 12.06.02, 5:57 PM ET
By John Crawley
WASHINGTON, Dec 6 (Reuters) - House Speaker Dennis Hastert on Friday blasted a special government board's rejection this week of a $1.8 billion loan guarantee request by United Airlines (nyse: UAL - news - people), a major employer in his home state of Illinois and the nation's second largest airline.
"This is clearly a wrongheaded decision for our nation's economy on so many grounds," Hastert said in an usually strongly worded statement.
Hastert, a Republican, led a high-profile lobbying campaign on behalf of Chicago-based United, which employs 83,000 people and could be headed for bankruptcy court in the coming days.
He discussed the matter with President George W. Bush and his senior economic advisers, including ousted Treasury Secretary Paul O'Neill, in the weeks before Wednesday's decision by the Air Transportation Stabilization Board.
O'Neill, who resigned under pressure on Friday along with top White House economic adviser Lawrence Lindsey, designated Treasury undersecretary Peter Fisher as his representative on the three-member stabilization board. Fisher and Federal Reserve Gov. Edward Gramlich were the decisive votes in rejecting United's application.
In a statement, Fisher said that United's business plan was "fundamentally flawed." The board questioned United's revenue projections and its ability to repay any loan supported by a federal credit guarantee.
Industry sources have said the stabilization board's refusal to grant United a loan guarantee will likely force it to seek Chapter 11 bankruptcy protection perhaps as early as this weekend.
"The timing of the ATSB's ruling could not have been worse," Hastert said. "We're in the midst of the busiest travel season of the year and it simply does not make sense for the federal government to shake the confidence of the traveling public at this critical time."
Separately, the union representing 13,000 machinists and other workers at United called on Bush to immediately reconsider the stabilization board's decision now that O'Neill has resigned.
"The decision by O'Neill's designee to withhold critical financial assistance to United Airlines must not be allowed to stand,' said Thomas Buffenbarger, president of the International Association of Machinists.
A presidential spokeswoman said the White House respected the board's decision.
That's a good point. I remember Margaret Thatcher criticized Reagan for not cutting spending. It is true that the more prosperity, the more tax revenues and the more government spending. Still, I think more prosperity is worth it, and with lower taxes we will see more economic growth.
It sure would. Bush could then praise Putin for leading the world economy and strengthen the US/Russia friendship.
I would regretfully add Newt and Kasich to that list. They changed the paradigm from growth back to (phony) balanced budgets.
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