Tax cuts still grow the economy

With the Democrats in power, I hope that there are lessons that they will take from "the Gipper". One such lesson is that tax cuts grow the economy.

In his article*, George Will cites some numbers that you will find interesting. He wrote:

...since the Bush tax cuts went into effect in 2003, the economy's growth rate (3.5%) has been better than the average for the 1980s (3.1) and 1990s (3.3). Today's unemployment rate (4.6 percent) is lower than the average for the 1990s (5.8) -- lower, in fact, than the average for the last 40 years (6.0).

In 2004 alone, the economy grew by 3.9 %.

So why haven't these numbers been more obvious to us? I think that it has a lot to do with the public perception that the economy is directly related to the Dow and the NASDAQ. The Dow is doing much better for the last few months...but I believe that Americans have been putting their dollars into housing instead of stocks. We have had a red-hot economy but haven't seen it reflected in the stock market.

And good heavens! A 4.6% unemployment rate?! That number is almost as staggering as the 2.5% unemployment that Utah currently enjoys. Europe would kill to even approach these numbers!

What Reagan knew, Bush knows.

When Nancy Pelosi said that she has always been in favor of cutting taxes, President Bush joked that based on her record she "must be a secret admirer". Well, Nancy, I am one who hopes that you take your secret admiration out of the closet and lead your party by making the Bush tax cuts permanent!

*Democrats suffering from economic hypochondria, George Will 2006