BUSH'S FATAL ATTRACTION: ANATOMY OF THE BUDGET FIASCO

In: Policy review: the journal of American citizenship, Heft 60, S. 20-24

Abstract

IT IS NOW WIDELY RECOGNIZED THAT THE 1990 BUDGET AGREEMENT WAS THE GREATEST MISTAKE OF THE BUSH PRESIDENCY. BY ITS OWN CRITERIA, THE AGREEMENT FAILED TO REDUCE EITHER FEDERAL SPENDING OR THE BUDGET DEFICIT. BY RAISING TAXES WITHOUT SOLVING ANY LONG-TERM STRUCTURAL PROBLEMS IN GOVERNMENT SPENDING, THE AGREEMENT HAS PENALIZED THE PRIVATE SECTOR IN THE SHORT TERM AND REDUCED LONG-TERM CONFIDENCE IN THE HEALTH OF THE ECONOMY. THUS, THE AGREEMENT HAS CONTRIBUTED TO BOTH THE DEPTH AND THE LENGTH OF THE RECESSION. MOREOVER, THE POLITICAL MISTAKES OF THE BUDGET AGREEMENT WERE AS SERIOUS AS THE ECONOMIC MISTAKES. THE POLITICAL DAMAGE TO THE BUSH ADMINISTRATION WILL HAUNT THE PRESIDENT EVEN IF HE WINS RE-ELECTION.