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Politics : PRESIDENT GEORGE W. BUSH
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To: TideGlider who wrote (662370)11/24/2004 9:41:28 AM
From: DuckTapeSunroof  Read Replies (1) of 769670
 
"You certainly cannot compare the recent few years to any sort of grand rally."

I didn't ('dead cat bounce in a Bear Market rally', remember?)

Tonto was arguing that 'growth' would eliminate the federal budget deficit for Bush... and he used the true fact that federal tax revenues rose this year as his justification for the prediction.

"...Of course once the markets are running well it it should increase the tax revenues,"

Yep... higher capital gains tax receipts, higher consumer spending (because of their perception of greater personal wealth), etc.

"but the tax revenues don't kick start the economy."

Didn't say they did.

"Certainly the huge growth noted in the 80s was not associated with a grand rally."

Not sure what you are trying to say with that last....

The early 'eighties benefited from the end of the stagflation of the 'seventies (after a fairly hard recession), and lower taxes (although there were Reagan tax increases also).... But, compared to the decade of the 'seventies (where the DOW finished nearly exactly where it had started) the 'eighties were halcion days for stocks.

However, the budget deficits really started getting out-of-hand (spending was NEVER CUT as compared to the revenue reductions) in the second Reagan term, and into the first Bush term.

The market rally of the Clinton 8 years exceeded the total size of the rally of the Reagan 8 years.
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