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When the economy is humming along, the deficit cures itself. That's
what the tax cuts were for--to prime the economic pump. Tax and
tariff policy is about the only power government has over the
economy. They can slow down the economy with tax increases (as in
California) or speed it up with tax cuts. That's it.

two wheels


http://story.news.yahoo.com/news?tmp...id=749&e=1&u=/
nm/20031030/bs_nm/economy_dc

Economy Rocketed Ahead in 3rd Quarter
By Tim Ahmann

excerpt:
- ----------------------

WASHINGTON (Reuters) - The U.S. economy rocketed ahead at its
fastest pace in more than 19 years in the third quarter of 2003 as
consumers, their wallets fattened by tax cuts, went on a buying
spree, an unexpectedly strong government report showed on Thursday.

U.S. gross domestic product surged at a 7.2 percent annual rate in
the July-September period, the Commerce Department said. It was the
steepest climb since the first quarter of 1984 and more than double
the second quarter's 3.3 percent rate.

Three other reports on Thursday also suggested a firmer recovery was
taking root -- new claims for jobless benefits and a help-wanted
index suggested some stability in the labor market, while companies
spent more on wages and benefits.

The jump in GDP (news - web sites) growth, which also reflected a
big gain in business spending, outstripped forecasts on Wall Street,
where economists had looked for a rise closer to 6 percent.

- ----------------------



On Thu, 30 Oct 2003 12:31:56 -0500, "Schoonertrash"
wrote:

So what? Does it matter? Of course not. It hasn't mattered for
well over
sixty years. Didn't matter under Clinton, Bush Sr. Reagain,
Carter, Ford,
Johnson, Nixon (did I leave out anyone?), Eisenhower . . .
correction . ..
Nixon did something to correct it partially and Kennedy tried to do
so.

Measured against GNP as a percentage it's nothing. That's the
arguement
Doug used on me last time. Once you invoke that you are home
free. The
rest is just silliness like worrying about five or ten nukes in N.
Korea.
Hell . . .I'm used to worrying about ten thousand plus of the
things pointed
at me. Neither do I worry about the National Debt or the annual
budger
imbalances . .. .


[SNIP]


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