The Bush “Lost Decade” Vs Hope & Change

In January 2010 President Obama made an assertion in his State of the Union message he hopes you forgot:

We can’t afford another so-called economic “expansion” like the one from the last decade –- what some call the “lost decade” -– where jobs grew more slowly than during any prior expansion…

The chart compares the effect on employment of two, fundamentally opposite, government strategies, the Obama stimulus of 2009, and the Bush tax cuts of 2003.   Both were enacted after an extended period of job losses.

The last economic downturn, initially caused by the bursting dot-com bubble began in late 2000, with job losses starting in January, 2001 and accelerating after the terrorist attacks of 9-11-01 deepened the recession.  Congress enacted a “stimulus” in the form of small tax rebates and a five-year schedule of tiny, incremental tax rate reductions that began in 2002. These measures proved ineffective and job losses continued.

A Stimulus Based on Liberty: In 2003 President Bush persuaded Congress to abandon the five-year, incremental schedule, and enact large, sweeping tax rate cuts for individuals and small business.  Rates were reduced across the board for all income brackets and for capital gains and stock dividends.  This was the “stimulus” of 2003, a stimulus based on greater liberty.  Tax rate reduction, was a strategy that had proved successful when implemented by Presidents Kennedy and Reagan.

Over the next 52 months of continuous growth private sector employers added 7.3 million jobs.

Throughout those four plus years then Senator Obama, the Democrats and the establishment media continuously claimed that President Bush’s tax cuts had created a “jobless recovery.”

A Stimulus Based on Government Power: The original promise of the Obama stimulus was that it would, in Obama’s words “immediately jumpstart job creation.”  Instead job losses continued for ten more months and the job recovery has been tragically slow.

Business expansion and the job creation that goes with it have been curtailed by:

  • Unprecedented government borrowing, spending and debt;
  • Continuous threats of tax increases;
  • A massive new government regulatory superstructure, including ObamaCare, financial regulation and restrictions on energy production;
  • Subsidies to politically connected banks, Wall Street firms, unionized auto companies, and “green” industries.

The Bottom Line

Robust job growth is unlikely until Congress makes major progress on reducing the cost and regulatory burden of the federal government.  We must contact Congressmen and Senators and demand immediate action.

9 Comments so far

  1. Thousand Flowers Blooming on March 25th, 2011

    The Bush record is the worst ever. Virtually zero jobs in 8 years. This chart cherry picks a few positive months out of an 8 year disaster. Obama has a solid record of reversing the catastrophic bush depression and creating more than a million private sector jobs that will last.

  2. John Scotus on March 25th, 2011

    Re: the comment above, talk about drinking Kool-Aid, you must be dropping acid as well. Either that, or you live in a parallel universe where up is down and white is black and anthrax will make you healthy. Obama’s solid record cost me a great job, and has kept me working at a job that I hate for the past three years because the economy is in the toilet and no one in my field is hiring in the US (yes, no one, as in nobody, as in you have to go to Singapore or India to find work).

  3. Thousand Flowers Blooming on March 26th, 2011

    John
    Sorry you lost your job THREE years ago, when BUSH was running the country into the ground! Its only because of Obama’s policies that prevented a second great depression that you have any job at all.

  4. John Scotus on March 26th, 2011

    Sorry, a little wrong on the dates there. I didn’t lose the job–I lost a chance at a job that evaporated along with hundreds of other jobs, and had to stay at the job I had. This happened completely on Obama’s watch, and can be credited to him and his policies. Bush had absolutely nothing to do with it.

  5. John Scotus on March 26th, 2011

    Has it really only been two years? In my mind it was three, but it seems like ten. Can this country survive another two years of this nonsense?

  6. Thousand Flowers Blooming on March 26th, 2011

    You didn’t say what job you want. But if you want to get in on the ground floor there will be millions of good jobs that can’t be outsourced to India in the clean energy sector. Obama is positioning us for the future. He doesn’t work for the short term current quarter profits and next election.

    We’re still shoveling out the mud from the Bush corporate tsunami. The economy is growing and private sector jobs are on the increase. Things are getting better even though faux news and blogs like this one pound you with negativity all day long, to keep you from knowing the truth.

    Obama’s policies are for the long term – No more Republican bubbles that feel good for a short time and then crash after lining big banks and corps with billions in unearned profits.

    Obama is putting the fundamentals in place for long term growth, including a rational health care system that invests in medical care for people instead of profits for insurance companies. That’s key. The companies can spend only 15% of premiums on bureaucracy and CEO bonuses and profits. We’re making key investments in 21st centruy energy instead of throwing even more money at the old, dying oil companies.

    Bush and Cheney took care of their oil buddies and started wars so Corps like Haliburton could rack up record profits. Obama is bringing in new ideas and creative people to help the middle class come back from the brink.

  7. Hope bush | ZtInfo on March 27th, 2011

    […] The Bush "Lost Decade" Vs Hope & Change | Liberty Works | […]

  8. Drew on March 28th, 2011

    John Scotus –

    If you come to this site often, and you should, you will discover that all things awful are due to Bush, and all things good to Obama.

    TFB is nothing more than a particularly vapid and banal internet troll, but he/she will probably be happy t5o share their knee pads.

  9. Jimmy on March 30th, 2011

    Thousand Flowers Blooming…………that chronic you are smoking must really be potent. Gas prices have doubled since the Kenyan has been trashing the country, and unemployment shot up to 10%. He and the other socialists in Congress have increased the national debt by OVER $5 TRILLION since they won the majority in 2006. The last fiscal year that republicans controlled the Congress and executive branch, the budget deficit was under $200 billion. Wake the *&#$ up!