Economic Counterpoint

Dean Baker is a very smart Economist, but he is wrong on this one. The high value of the Dollar under the second Clinton administration was from what exact Dollar-Prop policy? Conservatives spout all sorts of verbiage, but it all culminates down to the fact the Federal Government was running a Surplus, cutting the National Debt. Were the Clinton Tax policies so inherently wrong? They didn’t seem to retard significant economic growth through the two Clinton administrations, and even if the Recession started during the last year of the Clinton administration–which I have always doubted, it was only noted for the deflation of the Tech Boom; remember significant rise in Unemployment did not become reality until after the Bush Tax Cuts, claimed to save Jobs though all Business personnel knew they were going to continue their Downsizing and Layoff policies. The Recovery from the last Recession also was the slowest of the last four Recessions, and the excess funds from the Bush Tax Cuts simply enabled American Corporations to finance Overseas Production.

The Bush Tax Cuts did produce a massive Increase in the National Debt, and a Spending which did not significantly help overall economic health. Dean’s fourth Paragraph is only too true; but it does not mention the level of Federal Government purchases of foreign Goods to supply it own Overseas commitments, or does it reflect the huge Sale of Federal Debt to foreign banks. It can be stated some $200 bn of foreign purchases reside with Federal Government Procurement, and that the excess Dollars overseas comes mainly from Federal search for Debt underwriting.

One does know that Clinton Taxes at least controlled a rapidly accelerating economy, even if One refuses to admit that those Taxes actually provided propellent for that economic Growth. The Bush Tax Cuts did not provide the propellent level existent in the economy under Clinton–from whatever source, and did guarantee a vastly increased National Debt; especially as the Republican years did not even think to limit Government Spending in any meaningful way. lgl