Why the U.S. Public Rightfully Rejects Bush's Handling of the Economy

The American Research Group's poll conducted from February 18-21, 2007 reported:

Approval Ratings - Bush's Handling of the Economy
Approve - 40%
Disapprove - 54%
Undecided - 6%

The Bush Administration, most Republicans, Fox News, the Wall Street Journal, and many TV pundits continually lament, "Why Doesn't Bush Get Credit for the Economy?"

Reported the New York Times on July 12, 2006:

"Today is a good day for the American taxpayer," Mr. Bush said at the White House... "Tax relief is working, the economy is growing, revenues are up, the deficits are down," Mr. Bush said, "and all across this great land, Americans are realizing their dreams and building better futures for their families."

Kimberly Amadeo, About.com Guide to the the U.S. Economy reports in 2007 that "The Economic Report of the President basically paints a glowing picture of a healthy and vibrant U.S. Economy." President Bush cites his income tax cuts for America's wealthiest as "providing the liquidity that drove the economy back to health."

When one only looks at the simplistic "big picture" of economic elements that directly affect most Americans, it's easy to believe that the U.S. economy is vibrant and healthy, and growing at a pace to support all Americans.

After all, the NYSE Dow Jones Industrial average closed last Friday at an astounding 12,647.48. Prime and consumer interest rates remain relatively low. Unemployment is low, and "likely to remain low over the next two years," per Federal Reserve Chairman Ben Bernanke.

Why, then, does the American public strongly disapprove of the President's handling of the economy?

Two articles from this past week, taken together, eloquently illustrate Americans' rightful rejection of the Bush Administration's approach to domestic economic matters:

U.S. Economy Leaving Record Numbers in Severe Poverty, McClatchy Newspapers, February 22, 2007; and

What, Me Save? Wall Streeters Put Bonuses in Homes, Art, Not Banks: Not a 'Generous" Group, Wall Street Journal, "The Wealth Report," February 23, 2007

Excerpt from Each Article
U.S. Economy Leaving Record Numbers in Severe Poverty
" McClatchy Newspapers analysis of 2005 census figures, the latest available, found that nearly 16 million Americans are living in deep or severe poverty... the number of severely poor Americans grew by 26 percent from 2000 to 2005. That's 56 percent faster than the overall poverty population grew in the same period...

The plight of the severely poor is a distressing sidebar to an unusual economic expansion.

Worker productivity has increased dramatically since the brief recession of 2001, but wages and job growth have lagged behind. At the same time, the share of national income going to corporate profits has dwarfed the amount going to wages and salaries. That helps explain why the median household income of working-age families, adjusted for inflation, has fallen for five straight years. "

What, Me Save? Wall Streeters Put Bonuses in Homes, Art, Not Banks
"Bankers' spending -- what they call their 'burn rate' -- is growing as fast as their bonuses. While the national real-estate market is suffering, multimillion-dollar homes continue to trade briskly in the Hamptons and Manhattan. Art prices keep soaring, and the Armory Show in New York this weekend is sure to bring crowds of bankers looking for the next Chuck Close or Richard Prince. Wine purveyors are drunk with delight as financial types fork over $345,000 for a case of 1945 Mouton Rothschild.

While the poll, by wealth-research firm Prince & Associates of Redding, Conn., is only a sampling of the Street, it adds to growing signs of an entirely new level of consumption there.

Last year, Wall Street bonuses jumped an average of 15% to 20%, meaning that the senior bankers with the title of managing director received average pay of between $2.2 million to $3.8 million... Overall, according to an estimate released by New York state, Wall Street will pay a record $23.9 billion this year in bonuses."

Just imagine... under George Bush's tenure, Wall Street Bankers are compensated far less than top executives in the profit-rich oil & gas industry.

Clear and Present Danger to Democracy
The ever-expanding 21st century disparity between the rich and poor in the U.S. is obscene, cruel and immoral.

And it's a clear and present danger to maintaining a democratic form of government.

Explained Dr. Walter Williams, University of Washington professor emeritus of public affairs, in a 2003 paper, Reaganism and the Death of Representative Democracy:

"President Bush's tax cuts increased the political power of the richest Americans. Their gains fueled the huge increase in campaign contributions and made big money the driving force in national politics."

This "massive maldistribution" of wealth has severely weakened U.S. political institutions and democracy.

Today's rising inequality, Williams argues, distorts the political system and turns ordinary Americans into second-class citizens. Wealthy individuals and major corporations have returned the favor of tax cuts and deregulation with a flood of contributions... which Williams describes as key... to maintain the plutocracy.

"By the time you or I get into the act," Williams said, "the candidates are pretty much served up for us by the wealthy interests."

THAT is why the U.S. public rightfully and wisely rejects President George W. Bush's handling of the economy.

Recommended Reading
GAO Issues Another Gloomy U.S. Fiscal Outlook, (U.S. Gov Info)
Federal Budget Cuts $21 Billion from Non-Military Discretionary Budget
Federal Budget Cuts Social Security and Medicare $56 Billion in 2012