9/09/2003

Deficit spending by the Bush administration is just one more "classic" way of getting us out of recession. Hopefully Larry Kudlow is right about the 193,000 job growth figure inside the Jobs number. The deficit spending includes huge defense spending, and farm subsidies (which he has increased), more medical care (not a jobs generator), education (some new teachers), plenty of high tech and is as responsible as anything else for the latest "tech boom" in the market, an absolute ton into various areas of the "War on Terror" of which the Department of Transportation has spent billions, and so on. The major question is whether we can "grow ourselves out of this kind of deficit" or not. The only thing a Democratic Administration would have done differently is to spend on pork barrel stuff like highways, projects that take five years to get rolling and won't "quick fix" the economy. I think any president of either party if faced with the recession Bush faced would have ended up doing what he has done or lose the next election. More entitlement programs do not produce jobs. So while the usual suspects yell about the deficit nobody has come up with a better way (alternative way) to bail us out of recession; well many Democrats want to raise taxes but they haven't made the case that taking money out of the economy helps anybody.

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