Make Noise, We’re Almost Fiscally Sound!

As Democrats simultaneously celebrate their Election Day victories and Donald Rumsfeld’s almost unexpected resignation, one thing is clear to even the most politically apathetic individuals: “Iraq” was the deciding factor. Yes, for once (or so it seems), the Democrats didn’t blame the Grand Old Party for economic shortcomings, recessions, irresponsible tax policies, and the ever-growing government deficit. I’m only a freshman and have yet to take a political science class, but I can venture a guess as to why the economy card wasn’t played by Democratic candidates in representative, senatorial, and gubernatorial races alike: there is nothing negative to say.

That’s right. Many of the economic issues which arose during George W. Bush’s first term as President have been adequately addressed, almost to an unbelievable degree. I’d probably be in debt too if I had to give up a nickel every time I heard an individual say the words “trillion dollar deficit;” as of late however, I haven’t heard the phrase uttered as much. That’s probably because George W. Bush and his current administration have instituted fiscally sound economic policies to ultimately decrease the dreaded deficit by half. What’s even more surprising is that this wasn’t supposed to happen for another three years; at this rate, the next administration might have to plan more vacations. The President, in an October 2006 speech, revealed that the budget has thinned down to represent only 1.9% of our nation’s economy ($248 Billion). This also raises the question of availability of funds; exactly where have all the deficit-quelling revenues come from since Bush has lowered taxes? Where did they get the money? Has the CIA hired Danny Ocean?

It’s time for Democrats to face the facts. Tax cuts meant to preserve purchasing power and facilitate consumer spending do, in fact, work; trust me, deficits are extremely rugged and tough entities, barely anything scares them away (besides money). By cutting taxes for small businesses (a policy decried by various supporters of the donkey), these same businesses had more capital and spending power, and what exactly do businesses love spending money on? Labor. By allowing businesses to have access to fluid capital which would otherwise have been swallowed by the government, more jobs for Americans have been created, resulting in overall economic growth. Unemployment has sharply decreased since June 2003, plunging from a decade high 6.3% to 4.4% last October. The reason for this? Clearly, new jobs have been created to satiate the previously vast field of unemployed workers. Since 2003, America has been able to create 4.6 million new jobs for Americans; according to the President, this is more than Japan and the European Union combined. Lest we forget, the past three years haven’t been the most sound: Hurricane Katrina tragically devastated New Orleans and gas prices have continued to propel higher. In the midst of rising oil prices and natural disasters, only sound economic policies prevail.

America’s GDP has grown 1.6% over the last year, weighing in at approximately $13 trillion dollars. In addition, American disposable income grew 3.7%; thus, not only did Americans enjoy a period of economic growth, they didn’t have to worry about the government taxing their savings. Even inflation has begun to cease; a recent Consumer Price Index report released by the government on November 16th shows that domestic prices fell .5%, making the inflation rate rise a measly .1%. The Dow Jones Industrial Average has risen above 7% over the last two months, indicating that the American economy continues to grow and consumer confidence is running high

The aftermath of 9/11 threw the nation into a turbulent course of travel; suddenly we were caught in an atmosphere composed of lost consumer confidence, increased skepticism about domestic American security, and the consequences of escalating defense expenditures. Regardless of how Iraq is perceived, George W. Bush has demonstrated that fiscal responsibility can be maintained while national security and other especially pricy needs are simultaneously dealt with. In other words, Bush has shown that the employment of consumer and business-centric economic policies will prevail despite the existence of a multi-billion dollar campaign to end terrorism overseas and $440 billion dollar defense budget to keep Americans safe at home and abroad.