Bush Gambles with a Weak Solution

Tax cuts have their place in fiscal policy, and can be the right move to reward taxpayers during times of prosperity and create room for future increases when more money is needed for government spending (because, lest I be mistaken for a reckless tax and spend liberal, there is such a thing as too much tax). Unfortunately, Conservatives tend to see tax cuts as the "one size fits all" solution for all economic woes, despite the strategy's weak history when sought as a stimulus

This week Bush announced cuts to energize the US economy in the face of a looming recession. How reducing their revenue, when they're already ridiculously in debt, will improve the US financial situation is beyond me. I'm sure some of the targeted cuts will help those most hurt by the sub-prime devastation, but I have my doubts about this approach, as I've written before. Details on the direction and full scope of the cuts have been brief, so it remains to be seen how practical this application will be.

I will watch the impact on the US economy as once again the trickle-down, supply side approach to economics is applied despite its lack of historical success. For the sake of the US economy, of which so much of Canada's economic stability depends on, I hope they prove me wrong and the empowerment of individuals magically results in a collective action solution.