>>Having said that, more tax cuts are surely not the solution.
>>
>
>I believe they are, but combined with big spending cuts. They haven't figured out the cut part yet. One thing I'll give to the Clinton years, is I think they did have some non-deficit years in there.

Steve;

Administration policies on the economy sometimes have an immediate effect. Let me add Ronald Reagan to the smoke and mirrors comment. During his two terms he doubled the number of federal employees and doubled the national debt, after stating he would reduce both. Then add the Savings and Loan scandal which cost the tax payers over $600 billion. Lots of pensions and 401K's disappeared over night.

Speaking of national debt:

http://www.lafn.org/politics/gvdc/Natl_Debt_Chart.html

Nixon attempted to control the economy and did a good job of it! He asked companies to freeze wages of all employees except those working under union contracts. The companies being patriotic complied immediately. Nixon then asked that prices of all produce and goods manufactured in this country (yes, we did have manufacturing in the early 1970’s) be frozen. A federal office was set up to investigate any complaints of price increases.

Prices went up and nothing was done about it. Nixon had economic Phase 1, 2, 3, 4 and 4 ½. Then he resigned for other reasons.

JFK introduced reduced taxes during his partial term in office with a corresponding improvement in the economy which was felt almost immediately. Unemployment decreased.

A term often used by the Republicans during the 1980’s until about 1990 was, “Trickle Down Economics ”. By giving tax benefits to the wealthy and large corporations surely a few crumbs will fall to the working class.

Regardless of who is in office and what happens the person in office is going to be blamed or commended. It depends upon your point of view!

Personally, I dislike all legislators and politicians. They have nothing better to do but form committees and take fact finding trips around the world to determine new and better ways to tax everyone – businesses and individuals alike.

Just imagine – you work your fingers to the bone while someone in office is dreaming up a tax increase to pay for some imperative need. They sit back and dream up new ideas while you try to survive. What a lovely system! :)

The tax reduction from GWB has had an interesting effect upon unemployment. Many reports I have read indicate that many people are unemployed and have dropped out of the job-hunting experience. Many IT types in Silicon Valley for example take about 21 months to get a job and the job is not within the world of IT. Lots of people have moved out of the area. They tell us that Silicon Valley has not recovered.

We are told that productivity is up therefore fewer workers are needed. I know people working long hours to make up for the shortage of personnel. People are giving back vacation time to employers according to the radio news this morning. 71% of Americans surveyed said they would like to take a vacation this summer but cannot afford the time or money.

The name of the game is to survive. Along with that thought keep a smile on your face and enjoy the ride! :)

We are all in the same boat. The difference is that we all look out through our own port hole! :)


Tom