Posted on 07/18/2002 1:35:12 PM PDT by churchillbuff
Edited on 09/03/2002 4:50:45 AM PDT by Jim Robinson. [history]
Read the story online. It says the Republican and conservative economists, and Wall Street economists, want Bush to press for more tax cuts - such as capital gains cuts - to help the tanking stock market. (And, I suppose, to make sure the GOP doesn't get clobbered in the coming election).
Unfortunately, like his dad in 1992, Bush isn't listening to these voices. He's content to let his long-term tax cuts kick in years from now - - - even though Americans are feeling the pain NOW.
(Excerpt) Read more at washingtonpost.com ...
Some on Wall Street worry that the loss in wealth due to falling stock prices will cause consumers to spend less and save more, slowing economic growth. William C. Dudley, chief economist for Goldman Sachs and Co., said "there's disconnect" between Bush's policies -- such as extending last year's tax cut past 2011 -- and the problem. "It's the least optimal situation for an economy that's potentially in trouble to be cutting taxes not now but in the future."
Lawrence Kudlow, who was an economist with the Reagan administration, also criticized the Bush administration for its long-term view on taxes. "They seem to be a little slow reacting to changing events," he said. ...
Wall Street analysts and several economists also propose cutting the capital gains tax paid on profits from stock sales or eliminating all taxes on such profits if they are reinvested in new stocks. And some have pleaded with the White House to revisit its decision to impose steep tariffs on imported steel. "Bush's steel decision has really hurt the markets by creating a sense that we're going to have trade wars," said economist Stephen Moore of the Club for Growth.
I SIMPLY DON'T UNDERSTAND WHY THE BUSHES REFUSED TO LEARN FROM REAGAN. If it weren't for Reagan, neither Bush would ever have been president, but they still don't give him his due as the only successful Republican president in a generation.
Is this guy's name Lindsey - or Darman?
You must have a job at the WP.
BUCHANAN: "Thank you, Bill. I want to talk today a little bit about whats going on in the economy, because it concerns a lot of folks. And one of the reasons you have got real problems in the market, the Nasdaq has lost 75 percent of its value, and the Dow has lost about 30 percent of its value-that equals in the United States, since the peak of the market, over $5 trillion dollars in equity has been wiped out.
Worldwide its over $11 trillion. Now people arent saying why it is. And Ill tell you one reason theyre ignoring. It is the collapse of the American dollar overseas against the yen and the euro.
Why is the dollar falling? Too many dollars are out there. All over the world a wash. How are they getting out there? Three ways. American foreign aid shovels them out of the United States. Second, IMF and World Bank bail-outs of year ago, they shovelled all those dollars out there. But third and most important, since Y2K began, January 1, 2000, the United States has run $1 trillion in merchandise trade deficits.
Thats right, more goods, a trillion dollars more goods pouring into America from foreign factories than going out from America.
What does that mean? It means manufacturing is dying in the United States of America. Jobs are going overseas. The great economic independence of the United States is being lost and, more important now, it means its coming right home to River City, and its starting to kill the American dream. Congress has got to get off this global free trade, which is killing this market. "
Since we now have an 'information-service' economy instead of an industrial, maybe we can export some information (audited) some hamburgers or some dot.gone knowhow.
I'm not sure just how effective this measure would be -- So much of the capital that is tied up in stocks today is in tax-sheltered or tax-deferred accounts anyway.
And the notion of eliminating taxes on the profits of stock sales if these profits are used to buy more stocks is nonsense -- Democrats have rightly been criticized in the past for what they call "targetted investment."
Kudlow, Moore, the Wall Street Journal, etc. are all wrong about this in one crucial respect: they are acting as if the stock market is the be-all and end-all of the U.S. economy. We are witnessing the free market at work, and they simply don't like what it is saying -- Fewer and fewer investors have any confidence in the integrity of corporate America these days.
Unfortunately, it looks like hell will feeze over before Bush will push for cap gains tax cuts.
Especially if that criticism comes from the WP. Wow you are a beltwayer aren't you.
JMO, but you should really get over doing a lewinsky over anything the WP posts. Enter the real world.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.