Bush Still Denying Economic Reality

It looks like Bush is still burying his head in the sand so he won't see the economic realities facing this country. In releasing his annual Economic Report of the President, Bush says the United States will avoid a recession and he expects growth of the economy this year to be about the same as last year -- about 2.7%. Bush says "that our economy is structurally sound for the long term and that we're dealing with uncertainties in the short term."

He thinks economic growth may be sluggish in the first half of 2008, but will rebound in the last half of the year. He then expects economic growth to accelerate to 3% or better in 2009. I don't know where he's getting these rosy numbers, because most economists expect the harshest recession in over twenty years.

Even more significant, the American people don't agree. A clear majority (61%) believe we are already in a recession according to an AP/Ipsos poll. The facts would tend to support this view, such as:

*The last three months of 2007 only grew at an annual rate of 0.6% and there is no reason to believe 2008 will be any better than that.

*Worker's wages fell by 0.9% last year. It was bad enough when they were stagnant, but now they're actually falling.

*Construction activity has fallen by 16.9%. This is the biggest fall in 25 years.

*The country actually had a negative job growth in January. We have been replacing good-paying industrial jobs with low-paying service jobs for a while, but now the service jobs aren't even coming.

*Housing prices are falling nationwide, and home foreclosures are at record levels.

*Consumer confidence has fallen to 48.5, the lowest mark since they've been measuring it.

*The modern version of the "bread line", Food Banks, are having trouble keeping up with the increasing numbers of people needing their services.

*Our healthcare system is in a shamble, with insurance costing more and covering less than ever before. Medical bills are the leading cause of bankruptcy for the middle class.

*The cost of essentials, such as food and gas, are outrageously high.

Bush actually thinks he's going to solve all these problems by giving most Americans a $600 check. He thinks everyone will rush out and spend this pittance, and the economy will magically rebound. He's an utter fool if he really believes that.

I don't think anyone believes that. The "stimulus" is nothing more than a "feel good" measure for voters in an election year. All it will do is increase our deficit by $167 billion. The only thing that will bring us out of this recession is to make some fundamental changes in our economic policies.

We must stop the tax-cuts and "welfare" programs for the rich. We must make a real effort to attack poverty. We must create good-paying jobs. We must make education more affordable and accessible. We must fix our healthcare system so that it works for everyone. We must go "green" and wean ourselves off of oil and coal. We must put a cap on outrageous interest and insurance rates.

In short, we must return the Democrats to power. The Republicans will do none of this. They would just continue the Bush policies and turn the current recession into a full-blown depression.