Fables of Economic Strength

The Bush administration’s line on the economy continues to defy logic and facts. Defending his annual economic report in Missouri yesterday, the president pledged to create 2.6 million jobs in 2004, asserting economic strength would reach "every corner of America" despite clear evidence of a lagging job market and stagnant wages. The president warned that dividend and estate taxes must be permanently cut in order to maintain growth, ignoring years of economic consensus – and criticism from members of his own party – that large, sustained budget deficits threaten long-term growth and stability.

• President Bush’s economic policies have not created adequate job growth. Despite the president’s rhetoric on jobs, his record tells the real story – the economy has shed 2.3 million jobs since President Bush took office, putting him well on the path to the worst jobs record since the Great Depression.
• The president’s policies do nothing for millions of working Americans. As the president shuttles from one high-end fundraiser to another, the reality for working Americans is harsh – stagnant wages, rising health care and education costs, and increasing household debt. Massive tax cuts for the rich have done little to help struggling families send their kids to college, prepare for retirement, or take care of sick relatives.
• Permanent tax cuts will only deepen America’s fiscal hole. President Bush’s tax cuts are the single largest contributor to the declining fiscal situation of the government, with cumulative deficits now projected to be nearly $5 trillion over the next decade. Despite mounting deficits and quickly deteriorating finances, the administration’s greatest priority is to permanently extend his tax cuts for the wealthiest Americans.

Daily Talking Points is a product of the Center for American Progress, a non-partisan research and educational institute committed to progressive principles for a strong, just and free America.