Inflation is the domestic devaluation of the dollar. And W keeps stating that he wants a weaker dollar.
This is the cause of much of the "appreciation" in the stock market and real estate. It sure isn't the REAL value of the profits reported by the companies.
Stock market performance has been pathetic under W. And yes much of the increases have been due to more government spending and price increases.
When did he say that?
Not sure where you have been investing in the stock market, but if you look at mutual funds which a majority of investors own, by asset class since the market low of October 9th 2002,
Mid Cap Value leads the way up 143%, the only asset classes not up triple digits are Large Growth up 59% and Large Core up 75%. Doesn't seem to be a horrible return to me.