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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (134447)	3/12/2001 5:17:29 PM
From: TimF	Read Replies (3) \| Respond to of 1577188

Bush responded with his tax cut well before he should have....he wasn't doing it to help the country but to win people over after the election mess. As a consequence he is losing credibility fast. Plus, he can't seem to stay in one place for more than a few hours..... His tax cut wasn't a response to the market. It was a plan from the begining of his campaign. I think he would lose more credibility if he dumped it. Right or wrong (and I think he is right) he is sticking to his word about tax cuts. Bush needs to do what's best for the country and not what's best for himself politically. From the get go, he has painted the economy as being bleak when that wasn't true so that he could gain popularity with his tax cut. Its hard to guess what other people think but I think he is pushing the tax cut because he thinks it is a good thing for the economy and for ideological reasons. Now he has instilled a lot of fear and consumer confidence is worsening and infecting everything. He opened Pandora's box and he can't get it closed. I think you vastly overestimate the effects of his statements. Greenspan's comments have a lot more short term effect on the economy and even his comments don't effect the economy as a whole as much as you think Bush's do (AG's comments do effect the stock markets a lot). The one way the who tax cut thing might slow things down is people will delay things until the tax rates are lower. Only a very small part of the tax cut is retroactive. So even if the tax cut will help things out in a year or so, it doesn't have a positive effect now. I would move in sync with AG...Bush clearly doesn't understand economics...let AG lead. The economy responds faster to an interest rate change then to a tax cut that will be phased in over years so interest rates might be a better way to try and control the economic cycle. But there is some question about how much any one should even try to exercise such control over the economic cycle. Certainly their has been some mistakes over the last few years. I don't know how these mistakes can be avoided. Tax cuts help free up resources for private investment and help long term growth but you are right when you say they are not the best way to try and control the economy in the short run. Tim