The Democratic Party, including President Obama, seem to think that the Bush administration tax cuts of 2001 and 2003 caused the recession of 2008. The recent Matt Lauer interview of George W. Bush shows how some in the media have bought into this line of thinking. Matt Lauer’s question about maintaining the Bush tax rates…”We’ve been living under that system for 7 years now and we’ve seen incredibly slow growth in jobs.”
It is bad enough that the Democrats are trying to gain political advantage by ignoring facts. It is, however, unacceptable that people in the media would propagate this falsehood when the facts are easily available.
The Bush Tax cuts had the same effect on the economy that the Reagan, Kennedy, and Harding/Coolidge tax cuts had. They created sustained economic growth and jobs. The facts are as follows…
Year GDP Growth Rate Unemployment Rate
2003 2.5% 6.0%
2004 3.9% 5.5%
2005 3.2% 5.1%
2006 2.8% 4.6%
2007 2.0% 4.6%
These statistics are readily available at government websites, and could take as long as 10 minutes to research (http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LNS14000000, and http://www.bea.gov/national/). To admit to these statistics would deny the ability to argue the effectiveness of tax cuts to economic growth, and job creation.
The economic downturn that we currently find ourselves in, was caused by the housing crisis. Reasonable people can argue about what caused the housing crisis, and how it could have been prevented. It is not reasonable to argue that the tax cuts of 2001 & 2003 helped the economy tremendously for 5 years, then apparently caused a crash 6 years later.Hidden Secret Revealed A simple strategy to trade stocks is uncovered!