The Bush Bust?

CAMBRIDGE: America’s long boom is at risk. Signs abound of an impending slowdown, even of recession. These dark clouds are gathering as transition from the Clinton to Bush Administrations gets belatedly underway.

The quality of economic management in the new Administration’s first year will set the course for many years to come. When President-elect Bush talks about using huge tax cuts to keep the economy humming, it is time to start worrying. Large tax cuts are a short-term “solution” that could do serious long-term damage.

Rapid growth and huge increases in stock market wealth are nowadays almost taken as a matter of fundamental right by many Americans. They can’t imagine the US economy slowing, or share prices falling and staying down. They have read too many phony analyses of the New Economy promising unbounded riches and full employment forever.

To continue reading, please log in or enter your email address.

To access our archive, please log in or register now and read two articles from our archive every month for free. For unlimited access to our archive, as well as to the unrivaled analysis of PS On Point, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/QIETUYn;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.