Friday, January 20, 2006
That Bush Economy
On January 20, 2001 George W. Bush became the 43rd President of the United States. On Friday, January 19, 2001 the Dow Jones Industrial Average was 10678.28, having gained 93.94 points, mostly due to IBM's 75 plus point rise. For the year the market was down 1% after losing 6% in 2000. Analysts predicted a stellar year for the markets and by implication the economy as a whole. Andy Brooks, head of the stock trading unit at T. Rowe Price said,
Light, Sweet Crude ended the day trading at $68.48/barrel. Five years ago the same barrel traded at $30.45. That's a lot of inflation.
Now, weren't those tax cuts for the billionaires supposed to do wonders for the economy? Weren't those tax cuts supposed to fuel an economic recovery? Hmmm. Five years of tax cuts and the Dow Jones Industrial Average is almost ten points lower? Sure sounds like a robust economy to me. I hate to break it to old Andy Brooks, but it looks like the train never left the station.
On January 20, 2001 George W. Bush became the 43rd President of the United States. On Friday, January 19, 2001 the Dow Jones Industrial Average was 10678.28, having gained 93.94 points, mostly due to IBM's 75 plus point rise. For the year the market was down 1% after losing 6% in 2000. Analysts predicted a stellar year for the markets and by implication the economy as a whole. Andy Brooks, head of the stock trading unit at T. Rowe Price said,
We are starting to get some good earnings numbers coming through, and there is a feeling in this marketplace that you had better get on the train or you are going to be left behind. (Wall Street Journal. (Eastern edition). New York, N.Y.: Jan 19, 2001. pg. C.1)Today, five years later, the New York Times reports the Dow Jones Industrial Average standing at 10,667.39 after dropping 213.32 (a mere 2%), canceling out all of the gains for the year.
Light, Sweet Crude ended the day trading at $68.48/barrel. Five years ago the same barrel traded at $30.45. That's a lot of inflation.
Now, weren't those tax cuts for the billionaires supposed to do wonders for the economy? Weren't those tax cuts supposed to fuel an economic recovery? Hmmm. Five years of tax cuts and the Dow Jones Industrial Average is almost ten points lower? Sure sounds like a robust economy to me. I hate to break it to old Andy Brooks, but it looks like the train never left the station.