houndawg wrote:UNI88 wrote:Second, I could argue just as convincingly that tax cuts and trickle down economics are good for the federal budget (and job creation) as you could that tax increases on the middle class/wealthy and percolate up economics are. But I don't think we're going to change the other person's opinion. IMO, Bush's problem wasn't the tax cuts it was the out of control spending that helped contribute to this mess (and all of Congress, Democrat & Republican are accomplices in that crime).
You must be kidding. You really think anyone would buy that argument today's in economy?

Just because a person's personal biases have caused them to make up their minds and prevent them from considering alternatives doesn't make those alternatives any less valid.
First, economic cycles are natural. The Federal Reserve has worked very hard to try and smooth out those ups and downs but they are going to happen regardless of public policy (by the Fed or Executive or Legislative branches). This downturn was going to happen sometime regardless of who was POTUS and what their policies were.
Second, a President's economic policy
typically has very little effect on the economy while they are in office. The true impact usually isn't felt until 10+ years after the policy was implemented. I say typically because I think the cycle might be shortening and because I believe that the impact of Bush's tax cuts combined with his spending like a drunken sailor in Manilla on the deficit has had a destabilizing affect on markets and economies around the globe which has made the current downturn much worse.
I've made the argument on AGS and won't completely repeat it here that Reagan's tax cuts created the environment and incentives that made the economic boom of the 90's possible. Clinton gets far too much credit for that boom (although his taking advantage of the situation and reducing the deficit was a positive factor). Without those tax cuts would people like Bill Gates, Michael Dell, etc. have started and built their companies to where they are; creating thousands and thousands of jobs and turning many of their shareholders into wealthy people? Without those tax cuts Gates would probably be working as a Senior Director at IBM.
Third, as mentioned above, government spending has contributed just as much if not more to the current economic crisis as tax cuts. Obama is continuing to spend our money like a drunken sailor. While this might or might not provide a short-term boost to the economy it ignores the long-term impact of an out-of-control deficit on the U.S. and world economies.
Fourth, tax cuts are not the root of the problem. Greed is! The same greed that caused Fannie Mae and Freddie Mac to give out loans to people who couldn't really afford them. The same greed that caused banks to package these loans and sell them as can't miss investments. The same greed that caused (and still causes) companies to focus on short-term stock market results rather than building a company for the future. The home loan crisis has really helped to exasperate a natural downturn in the economy and as a result, Franklin Raines and Congress are just as culpable in this mess as the Chairman of AIG is. Now you want me to trust that same Congress to fix the current mess? Pardon me if I'm a skeptical.
A socialistic economy run by big government is just trading one evil master for another. Greed for profit will be replaced by greed for power and control. Government regulation of the market is not a bad thing but government management of the market is.