Could It Get Worse?

The eight years of the Bush Supply Side experiment resulted in a series of economic lows.  This experiment resulted in the slowest economic growth since World War II.  Since the late seventies, wages for working class men had declined, but household income had held steady, mainly because of the surge of women into the workplace and most households had two earners.  But under the Bush experiment, household income declined.  Labor force participation, which had reached highs by 2000 dropped steadily under the Bush experiment seeing unemployment going from 3.9% at the start of his term to 7.2% at the end.  While starting his term in office with a $236 billion dollar budget surplus, Bush left office with a $1.2 trillion dollar deficit.  Thanks to Supply Side, unemployment rose, tax receipts declined, and the formerly employed, who had contributed to the country’s coffers, were now drawing from those coffers in the form of unemployment compensation.  Today, Romney says the recovery is not happening fast enough.  Ignoring the policies that caused the need for a faster recovery, Romney, based upon the advice of those who helped Bush create the economic disaster of his administration, have convinced Romney to repeat the great Supply Side experiment. Anyone with an ADI of less than $250,000 has to be a fool to think things would be any different from Bush if Romney is elected.  Under the Romney plan, the economy for everyone with an ADI under $250,000 will get far, far worse because at least under Bush many could use the equity in their homes to make up the loss in earnings.  However, by the time Romney gets elected, that equity has dried up either because homeowners have maxed out their borrowing capability or because the value of their houses have not recovered from the decline of the Bush Supply Side Experiment.  If you want to see a real depression in your lifetime, vote Romney/Ryan.  A 20% across the board tax cut, eliminating taxes on capital gains, dividends, and inheritances combined with a trillion dollar defense budget is a guaranteed recipe for depression.