by John M. Curtis
(310) 204-8700

Copyright June 7, 2008
ll Rights Reserved.

resident George W. Bush groped to find ways to resuscitate the sick economy, watching the unemployment rate jump a half-a-percent to 5.5%, the largest jump since 1986. At the same time, oil price prices spiked a whopping eight percent or eleven dollars a barrel to over $139, with some analysts predicting crude could top $150 by July 4. With the economy sputtering, GOP presumptive nominee Sen. John McCain (R-Ariz.) has a tough sell to voters following Bush's economic policy, especially his spending plan for Iraq. Bush asked congress for an additional $176 billion, pushing the five-plus-year total to nearly $1 trillion. “There's a short window for the president here when it comes to new policy. We understand that,” said White House counselor Ed Gillepsie, admitting that Bush's $168 billion economic stimulus package hasn't reversed the economy's nosedive, driving up the unemployment rate.

      When Gilliepsie talks about Bush being hogtied when it comes to changing policy, he's referring to a stubborn resistance to change course in Iraq. Nobel-winning Columbia University economist Joseph Stiglitz directly fingered the Iraq War's $12-16 billion a month price tag as tanking the economy. “We're beginning to see signs that the stimulus may be working,” said Bush at the Department of Housing and Urban Development. Rebate checks won't reverse the massive outlay of cash needed to fund the war. Over five years of excessive military spending has robbed the tax base of the funds to spend on needed infrastructure projects, necessary to stimulate the economy. With most war-related expenses outsourced, spending doesn't directly benefit the U.S. economy. With most equipment and weapons manufactured south of the border or in Asia, there's little benefit to the economy.

      There's no bigger threat to U.S. national security than a weak economy. Depleting the tax base on a war of questionable national security or foreign policy benefits without significant financial contributions by Iraqis makes no sense. Iraq's prodigious oil industry has been raking in untold billions while the U.S. empties the treasury causing damage to the U.S. economy. Bush talks about economic stimulus but has liquidated the tax base, driving the country into recession. Federal Reserve Chairman Ben S. Bernanke is neither rocket scientist nor magician, unable to control Bush's runaway fiscal policy. Passing permanent tax cuts or exploring for oil on the coasts or in Alaska won't stop the runaway military spending. Bush won't face reality that the Iraq War has tanked the economy. Blaming congress doesn't help his approval rating or McCain's chances in November.

      When consumers tighten their belts, it affects two-thirds of Gross Domestic Product. Watching the dollar plummet to record lows against the euro and pound sterling has helped drive the price of oil into the stratosphere. Supply problems around the globe don't account for the recent run-up in crude oil prices. Multinational oil companies have had a field day, raking in record profits at the expense of consumers and the overall economy. Bush has showed no leadership in helping to rein-in Wall Street and the oil industry from fleecing the country and taking down the economy. Bush and Vice President Dick Cheney have given the oil industry the green light to gouge consumers. Every time crude oil rises, the oil industry hike prices to assure obscene profit margins at the expense of consumers and virtually every other business. Oil executives could lower profit margins help manage the crisis.

      Wall Street sold off 400 points June 6 in blue-chip stocks, realizing lowered expectations for future earnings' growth. Wall Street makes money whether the market goes up or down. Only small investors can't time the market and prevent wild gyrations in share prices. “It's clearly a sign that is consistent with slow economic growth,” referring to the dramatic up-tick in unemployment, especially among recent college grads and first-time job applicants. Bush expressed concern about the dramatic rise in pump prices, putting the nation-wide average for unleaded regular at over four dollars a gallon. Yet he makes no effort from the bully pulpit to urge oil companies to lower profit margins at a time of national peril. Whether it worked or not, it would at least show he's not aligned with the oil industry's sense of entitlement or baloney that high pump prices help conservation.

      Bush must take a peek out of Oval Office and see the damage the Iraq War causes to the U.S. economy. Instead of blowing more smoke, he needs to admit that the sick economy needs urgent help, beginning with an orderly exit strategy. Finding an exit strategy would reassure financial markets that there's light at the end of the tunnel for the economy. “This is a time of turbulence in the housing market and slow growth for our overall economy,” said Bush, blaming Congress for delaying action on making his tax cuts permanent. Bush has no problem asking for more cash for Iraq but won't admit that the war takes too big a bite out of the U.S. treasury. Pointing fingers at Congress can't hide the fact that the only real stimulus to save the economy is ending the Iraq War. Whoever gets sworn in Jan. 20, 2009, they'll have to face the music or continue the economy misery.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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