Failed Bush economic policy, and the failed Bush tax cuts passed in 2001 and 2003, added $4.36 trillion to the national debt during his 8 years in office. And what was the impact of the Bush tax cuts on the American economy? Gross Domestic Product (GDP) grew an anemic 2.09% annually, only 3 million net jobs were created, and income disparity between the richest Americans and all the rest of us grew to all-time high levels.
In addition to the debt Bush incurred to finance tax cuts, much of the $4.36 trillion in federal debt went to pay for the wars in Iraq and Afghanistan, and a new and flawed entitlement program that brought prescription drugs to seniors on Medicare.
Meanwhile, by way of contrast, GDP growth was almost twice as strong, 3.88% annually, during the Clinton presidency. And what was Clinton record on taxes? President Clinton in 1993 raised the top marginal rate from 33 percent by creating two new 36 percent and 39.6 percent tax brackets, while at the same time limiting the growth of federal spending. Modest growth in federal spending, and increases in federal revenues slowly lowered the federal deficit and the federal claim on capital in the capital markets. This led to a decade of prosperity that produced 22 million jobs, actual federal budget surpluses, and future year budget surplus projections in the trillions of dollars. Reducing the government’s share of available capital meant more capital available for businesses and individuals.
So why aren’t we hearing the truth about the failed Bush tax cuts? Good question. Perhaps it’s because of who is buying our elections these days.