Bikerman2004 said:
Everyone of the things you list only fine tune the economy. They do not drive the economy. The government can help stimulate areas that they deem need it. Maybe you should quit looking at the US economy thru the European model.
If tax rates effect the economy, please explain why the economy grew despite the fact taxes were increased in the 90's.
If inflation policy(interest rates) drive the economy, how come when they were at record low levels, the economy still went into a recession(tech bust).
Thats is correct about nationalization. Now companies are just heavily subsidized eg Airbus.
The reason why an economy goes from prosperity to recession, is a multifaceted issue.
This was not the issue which we were discussing.
What we were discussing was Bush's influence (or lack of influence - as you contend) upon the US economy.
My contention is that all goverments - of whatever political persuasion - set
the macro economic conditions for an economy.
In the 1970's, the world economy was in a state of prosperity.
But in 1973 OPEC decided to increase the price of oil and thus the world went in to recession in 1974.
In 1979, the same thing happened.
In the USA and Britain, Thatcher and then Reagan adopted the Milton Friedman - monetarist model - to get them out of their respective recessions.
No amount of Microsofts/Dells/Boeings could implement policies to reverse the
recessions.
The goverment - in it's control of the overall macro economic conditions -
create the envoirment for companies to prosper.
Read your history of the USA between 1970-1990 and you'll see this.
Tax rates affect every economy.
In the 1970's - the Labour goverment in Britain had a top tax rate of 98% for the highest income earners.
Yes, 98%.
The flood of capital out of Britain almost bankrupted the country.
With regard to an economy going in to recession - despite record low level interest rates - there may be several reasons as to why an economy may still
go in to recession.
Ordinarily, one would assume that low interest rates would encourage businesses to borrow to invest and to grow jobs.
However, business will not borrow to invest, if the return on that investment
is not assured.
The fact that the US economy soared in the 1990's was multifaceted.
Initiatives like NAFTA, buoyant worldwide demand for US goods, the tech boom, the fall of Communism, globalisation, all contributed to US economic success in the 1990's.
This is why an economy will grow - depsite higher rates of taxes.
And the reverse applies.
The bottom line here is that the politicians create the circumstances for economic prosperity.
If the conditions are right ........
As you are a Republican, I would have thought that you would have been aware of Milton Friedman, Thatcher and Alan Walters etc.
Thatcher - whether one agrees or disagrees with her politics - recognised that it was the goverment who create the conditions for economic prosperity,
for the local grocery shop to thrive, for the creation of jobs etc..........