October 9, 2006
House Minority Leader Nancy Pelosi has been all over the place talking about what Democrats will do after they win Nov. 7. But it's hard to take her seriously when she promises to "jump-start our economy and reform our economic policy . . . to address the needs of working families," says Investor's Business Daily (IBD).
"Jump-start the economy"? That's what President Bush did in 2003, when he pushed through bold, broad tax cuts to end a slump that began in 2000 under a Democratic administration, says IBD:
- Since the cuts took effect, the economy has added $1.26 trillion in real output, $14.4 trillion in net wealth and 5.8 million new jobs, while productivity has grown 10 percent and business investment 24 percent.
- Since 2000, total consumer spending has risen $1 trillion -- nearly $8,000 per household -- after adjusting for inflation and the Dow Jones industrial average is hitting new highs.
Then there's the budget deficit:
- The Congressional Budget Office reckons it will come in around $250 billion.
- That's about 1.9 percent of total output, says IBD; in early 2004, when Bush vowed to halve the shortfall, it stood at 3.6 percent of gross domestic product (GDP).
The fact is this economy has done better than anyone expected, especially given the mammoth hits it took in the months just before and after Bush took over in January 2001, say IBD.
Source: Editorial, "Pelosinomics," Investor's Business Daily, October 6, 2006.
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