04-16-2003, 04:15 PM
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Senior Member
Join Date: Mar 2002
Location: Southern US
Posts: 817
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John Kenneth Galbraith Speaks Out Against Bush Economy
Some interesting observations from FDR's economist, John Kenneth Galbraith (from tompaine.com):
Quote:
On Bush, Greed and God�s Ministers
John Kenneth Galbraith Speaks Out
Galbraith: [this] recession is made worse by somewhat
perverse economic policy. I say somewhat perverse;
quite perverse.
TP.c: What perversion are you referring to? The
Bush administration�s tax cuts?
Galbraith: I wouldn�t attribute it to George Bush any
more than I would to the established view of the
industrial community, of the corporate elite, which
urges action -- as we all do -- for their own financial
benefit. As, for example, in the proposal to cut taxes
on dividends. That is a benefit for people who don�t
need the money and may not spend.
And then we will have partly as a result of the war, a
substantial budget deficit, and that will lead to
pressure to control social spending, help for the
poor. And they are the people who are reliable
spenders. If you have no money and get some
money you�re a favorable force on the economy
because you have to spend it. So we have a policy
which is bad for -- excepting recession -- for the
speculation that leads to it and a policy that is bad,
or at least inadequate, for doing anything about it.
We rely on the Federal Reserve, but it has had years
of demonstration as to how little effect it has.
TP.com: Why would a president lead an
economy down this path unless he had great
faith in a supply-side, trickle-down approach?
Galbraith: Well I would respond with two
observations. First, I don�t believe that President
Bush has economic judgment of any great depth,
and second, he relies on what one would call the
corporate elite, which automatically and reliably
comes in for any action which seems to be in its own
interest, which seems to support earnings and
dividends, and not the reliable expenditure of the
masses of the people and the poor. We have
economy there, and a liberal policy of tax-cutting for
the rich.
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