Bush Administration Report Card (7/22/02)

by Dean Hartwell

As of July 20, 2002, President Bush has been in office for eighteen months. Since the final year of his term, 2004, will focus upon the presidential election, he has, in effect, reached his halfway point. It is time to evaluate whether our nation is better since he became the president.

How do we know if we are better off?

We must evaluate the areas of our lives that the president has some degree of control in influencing. That would rule out factors such as interest rates, which are largely regulated by the Chairman of the Federal Reserve Board, and inflation and unemployment, which are mostly derived from decisions made in the private sector and actors in their respective markets.

Instead, we should consider decisions made by the Bush Administration and how they matter to us. The most significant decisions in that respect have been:

Tax cuts – Bush proposed tax cuts to give people “their money” back from the surplus he inherited when he took office. Most wage earners now get more money back on their paychecks than before the tax cuts. Unfortunately, the debt, which also belongs to the people, has risen, in large part due to the tax cuts and the corresponding decrease in revenue.

“War” on Terrorism – All of the controversy over whether the Bush Administration could have acted to prevent the terrorist acts of September 11, 2001 aside, Bush made decisions in response to the attacks that affect us.

He has directed his Justice Department to use wiretaps, computer tracking and other invasions of privacy with a lesser standard of cause than before. He has also ordered the detention of alleged terrorists without probable cause. Furthermore, he has sent troops to various places around the world, including Afghanistan and the Philippines, to root out terrorism.

Of course, the strategy of deploying the troops has been to protect us. Since we have not been attacked since 9/11, the strategy has apparently achieved that goal. But those who value civil liberties may rightly question whether it is worth what we have given up.

Corporate Fraud – Public outcry over corporations who have fixed their books to cover up their debts and accounting firms who acted as their accomplices has dominated this year’s news. With business executives taking the Fifth Amendment before Congress, corporations breaking records on bankruptcy and people losing millions in their investments, it is no surprise that people have little confidence in stocks and bonds.

This outcry reached a peak when President Bush, when confronted with his own past questionable dealings, gave answers that contradicted previous statements and then proposed bills in Congress that forbid what he did without acknowledging his own wrongdoing. The President missed a chance to come clean about his past and instill a little candor, if not confidence, in the public’s ability to invest. Until he can do that, I predict the stock market will continue to be uneasy.

Conclusion: While we have so far apparently been safe from new terrorist attacks, we have less freedom at home, no confidence in our investments and more debt to look forward to since Bush took over.

 

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