Big Picture Thinking

[Chaerophon]

I agree with you - the Bush administration retained power at precisely the wrong economic time; however, for an economy that is remarkably dependant upon that of the United States and was just as wrapped up in the tech craze as were our neighbours to the south, we seem to be doing alright... Pretty good, in fact.

It seems strange to me to react to such a precarious position by proposing what will amount to permanent tax cuts, en masse, in the wake of war. The administration's argument runs somewhere along the lines of "it'll stimulate job production". Uhhhhh, yeah, and.... A reduction of tax revenue coupled with an impending, unparalleled deficit of 400 billion + dollars is going to more than negate any economic stimulus that such a move may have, not to mention the fact that it will make it more difficult to survive the expense of interest payments on the already swollen debt load over the long term.

Once these taxes are cut, who's going to reinstate them? Speaks to me of a governing body more concerned with the party line and policy than any real-world concerns - a dangerous road to traverse in times such as these.

Edit: "ten out of ten nobel laureates agree!" (If you can't trust Robert Solow, who can you trust) :) Just found this story:

http://news.bbc.co.uk/2/hi/business/2735269.stm