Bush prepares to meet economic team; Advisers cross fingers that tax cuts will do the trick

CBS Marketwatch ^ | 08-10-03

[Brian S]

WASHINGTON (CBS.MW) -- When President Bush's economic team descends on his Crawford, Texas, ranch on Wednesday, odds are that each will be carrying some sort of lucky charm, four-leaf clover or rabbit's foot.

With the 2003 White House economic agenda substantially in place after Bush signed the latest $350 billion tax cut into law last month, his advisers can only wait, keep their fingers crossed and watch to see if it helps the U.S. economy regain its footing.

Economists do expect a strong pickup in the second half of the year, in part due to the tax cut. But so far, "it's a hope and an expectation -- not a reality," said Sung Won Sohn, chief economist at Wells Fargo.

Analysts said White House officials have little ammunition left to help the economy, in any case.

"I don't think there is anything left on the shelf that would change things over the next 12 months," said Greg Valliere, chief strategist at Charles Schwab's Washington research unit.

"Just about everything that could improve the economy has been done," he said.

Charles Gabriel, director of Prudential Securities' Washington research unit, sounded a similar note. "They have used all the old economic policy tools as aggressively as they can," he said, adding that at this point "they are biting their nails."

The six-member Bush economic team consists of the three Cabinet-level officials -- Treasury Secretary John Snow, Labor Secretary Elaine Chao and Commerce Secretary Don Evans -- plus three White House advisers: White House budget chief Josh Bolten, White House chief economist Gregory Mankiw and top economic strategist Stephen Friedman.

Showing he cares

Bush and his advisers will begin the effort to convince the public that things are indeed turning around, while in the same breath, showing compassion for workers whose factory jobs have been moved overseas. The economy has been hemorrhaging manufacturing jobs for months now.

"We're beginning to see hopeful signs of faster growth in the economy, which over time will yield new jobs. But the unemployment rate is still too high," Bush said during a Rose Garden news conference before departing for his summer vacation.

A poll released last Thursday indicated Bush is showing some political vulnerability as the economy moves into the forefront over the war in Iraq.

The survey, by the Pew Research Center, found that six-in-10 Americans now say the economy -- not terrorism -- is the most important presidential priority.

"Perceptions are funny. Convincing voters he was engaged in making the economy better was a problem for his father and I think it could be for him as well," said Valliere.

But this could lead to more criticism that the current Bush economic team is taking its orders from White House political aides.

The New Republic, a conservative Democratic magazine, has published a stinging criticism of Snow and noted that when the Treasury secretary meets with top Bush political adviser Karl Rove, it's in Rove's office.

Sohn of Wells Fargo said the Bush team could discuss specific steps to lower the nation's unemployment rate, which hit a nine-year high in June before slipping a little last month.

White House spokesman Clair Buchan said the economic team meeting is intended "to review where the economy stands."

It might be added that where the economy stands is at a crossroads.

Greg Robb is a senior reporter for CBS MarketWatch based in Washington.

[harpseal]

I was reffering to the content not the grammmar great catch.

[harpseal]

I note that when quoting another I couldnot correct that persons grammar and although my control of typos and spelling is at best spotty on my own part I do not engage in ptroling for these things.

[BushCountry]

LOL

[harpseal]

It was your grammatical mistake in the first place.

[harpseal]

Not only freeze, but eliminate the extensions unless companies can prove beyond a shadow of a doubt the local workforce can not provide the labor.

In other words enforce the law as written. Fine I am glad to see you see the light on this issue at least. Now I want those H1b's here now laid off unless aqnd until the companies can prove that there are no Americans who can do the job. i further support perjury prosecutions for those who have committed perjury. I presume you have no problem with enforcing the laws as written.

Even if teh economy were enjoying that 6 to 8 percent growth you say is predicted I would want the laws enforced and strictly enforced and I would want tariffs. the tariffs can't hurt the USA they can only help.

[oceanview]

wow, that is interesting. this practice is also leading to a corrosive effect in the way private sector white collar employees view not only the companies they work for, but the whole view of the corporation as part of our capitalist system in the US. The basic model of US capitalism; that corporations exist to make profits, but also provide jobs and a tax base for the public sector, is being shattered in the eyes of many.

[txhurl]

I would like for it to stay in place to help supplement our workforce if needed. These programmers are not evil, they are dedicated workers who contribute with their brilliance.

I'd like to think you're referring to 'non-evil' American programmers, but you evidently ain't.

Asymmetrical warfare... OK, who signs your paychecks?

[taxed2death]

Yuo should lay low with all your BS hype. I' just had three friends in three weeks who've had their jobs shipped off shore.

Where the rubber hits the road, tens of thousands of Americans are losing their jobs every week, because GWB insists on continuing the globalist Clinton policies. In this regard, he's just as guilty as that POS.

....meet the new boss, same as the old boss....

As for my three friends, they are not going to make the mistake of voting for a guy who gives corporations a tax break for shipping jobs offshore.

[taxed2death]

....you forgot to figure in the L1 visas which our fearless leader just signed into law, putting MORE Americans out of work.

[lelio]

This is going to stop soon, Bush can't afford to let it go, I am having my 2k dinner with him tonight and trust me he is going to get an ear full

Good to hear that. Have you ever been to another dinner or heard about topics of conversation in others? I'm interested to hear what Bush has to say about this in a candid environment. Hopefully he'll have some concrete ideas rather than "Americans will have to learn to adapt in a New World Order" which means "Start liking to live in a mud hut"

[samuel_adams_us]

If I get my chance, he will heard that loud and clear, this is my first dinner but someone always get's to ask questions.

[txhurl]

dinner with him tonight and trust me he is going to get an ear full

Thanks. Remind him that it may very well be 'it's the offshoring, stupid' that catches ablaze and sticks.

Tell Rove to come check out FR if he's fresh out of strategery iteratives.

[lelio]

Tell Rove to come check out FR if he's fresh out of strategery iteratives.

And if Rove doesn't maybe the 9 dwarves can put their numbskulls together and figure out that if conservatives on FR are complaining about Bush then maybe there's some straw there they can make some hay out of. Nah, let's just complain about Niger and nukes.

[forester]

....maybe their comments were out of context and they do see it and the report left those parts of their statements out.

Based on my experience at Klamath Falls, I know that the media can purposefully distort, or skew stories, in order to get their own biased point of view across. Maybe that is what has happened here.

[samuel_adams_us]

Last night only 350 people showed up to support Bush for the entire state of Colorado, he raised 1 million dollars but for state with a population of 4 million, that's not good. There were 4000 protesters outside the dinner, all with signs, "where is my job". I think he got the message.

[Conservative til I die]

Retract your 4000 lie that was already debunked elsewhere.

[samuel_adams_us]

I can't retract what I heard on the radio, all I can do is admit where I heard it and say that it is most likely wrong. If you had one ounce of wit, you would know.

[Conservative til I die]

You can't distinguish between 100 people and 4000 people? You were there, you saw with your own eyes. Get some new glasses.

100 people:

111

4000 people:

1111111111111111111
1111111111111111111111111111111111111
1111111111111111111111111111111111111
11111111111111111111111111

[txhurl]

What's important here is that the GOP fix this situation before it becomes, once again, the achilles' heel.