Information about Bush's Failed Economic Polices 

Bush Economic Policies have failed - more proof coming on Friday, March 11
by: Mike Crane

The Commerce Department is scheduled to release the January, 2005 Trade Balance figures on Friday, March 11. For a couple days just before and just after these numbers are released there will be a lot of coverage about the Bush economic policies. Then it will fade away until about the same time next month.

But the song will remain the same, only the numbers get worse and worse over time.

A couple months ago the new age rocket scientist, Alan Greenspan stated that we had a problem, that ever increasing Trade deficits can not continue forever. Now Warren Buffet is echoing our claim that the Bush policies are destroying your grandchildren's future (Source: below):

Instead of moving toward an "ownership society," Buffett suggested, with admitted hyperbole, that the economic burden ahead is more likely to result in a "sharecropper's society" dependent on foreign landlords.

But meanwhile the Bush Economic Polices continue their march into the country's history. Seemingly oblivious to the long term effects of these economic policies the Bush Administration continues to feed the public one crisis after another while using the power of the government to build "political capitol" (see: Bush Trade Policy - a look behind the scenes of a failed economic policy - its ugly!).

In a Fox News interview with Sean Hannity during the election President Bush stated we have a "strong dollar" policy. Well look at the track record for the past two years of the dollar vs. the euro.

Down, down, down ....

But the Bush Administration shows no concern that the results of his economic policy do not match the stated goal. He continues to appoint large scale political campaign contributors to positions that help advise and implement economic policies.

We are told that the weak dollar is good for us (despite the campaign rhetoric that our policy is a strong dollar) because this makes American exports cheaper. By being cheaper, this will increase our exports and solve our job and trade deficit problems.

Sounds good doesn't it?

But just like the strong dollar policy this political rhetoric is just that! The continuing Free Trade policies are moving American manufacturing and American products to foreign countries (and the jobs associated). We no longer have the capacity to produce enough goods to balance the Trade deficit. This was recently confirmed in a report in a Chicago paper (http://www.suntimes.com/output/business/cst-fin-hale10.html):

But what pundits have failed to notice is that the U.S. lacks adequate manufacturing capacity to eliminate the external deficit.

U.S. manufacturers currently produce about $1.5 trillion a year in goods, and have a capacity utilization rate of nearly 79 percent. The current account deficit is equal to 40 percent of American manufacturing output.

Between the Bush Administration supported Free Trade and OutSourcing policies, our country is rapidly losing our capability to compete. The chart on the right shows the long term trend in manufacturing jobs in our country:

Down, down, down ...

Once again, read the following statement from the Chicago Sun Times, not us!

But what pundits have failed to notice is that the U.S. lacks adequate manufacturing capacity to eliminate the external deficit.

Why do we lack the manufacturing capacity? Because our failed economic free trade polices have promoted moving our manufacturing base to foreign countries. Thus there is no end in sight for the Trade Balance.

Now we have the new form of moving jobs to foreign countries that has turned services into a trade deficit, it is called OutSourcing. In fact Bush supports this method of eliminating American jobs so much - that he had an India OutSourcing Company handle his Presidential Campaign telemarketing calls (see: India claims big election victory and laughs at Americans).

Specifically:

"He retained the services of Noida-based HCL eServe (the BPO arm of India-based HCL Technologies.) Its operators thereafter spent quality time, calling up American citizens to support GWB Jr for President and to also contribute to the Republicans. "

"As for its getting the names of voters from such a distance, that was thanks to a database provided by the Republican National Committee (RNC), the party's premier political organisation."

"That is how more than 10 million registered Republican voters were contacted, and well in excess of $10 million raised: all thanks to Noida and Gurgaon!"

Remember all of those campaign speeches about middle class America? All the while he was using jobs outsourced to India instead of American citizens. Wonder how many of you Republicans gave your credit card info to someone in India?

The Bush Administration economic polices are failing, failing bad! The problem is that the only other available option - the Democratic economic polices are just as bad and probably worse. But this mentality of picking the lesser of the two evils will only continue the current failed economic polices or instigate an even worse version.

Many have followed our recent series of articles on these policies and the most common feedback is: "It is easy to complain, what do you propose to fix the problem." After we report on the January, 2005 Trade Deficit results to be released tomorrow (March 11) our next article will propose the steps that we believe would correct these problems.

We are are honored that so many have asked. We are encouraged that so many have called us on the carpet for only presenting the facts and not suggesting solutions. That means that more citizens are becoming concerned about this grave issue. (See stay informed below if you want to signup for automatic notification when articles are posted)

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