Editorial: Bush’s stimulus is the wrong way

Friday, Jan. 5, 2001 | 9:40 a.m.

President-elect George W. Bush has wrapped up his two-day economic summit with business leaders, a forum reminiscent of a similar gathering held by newly elected President Clinton eight years ago. Sadly, however, Bush's renewed call for passage of his $1.3 trillion tax cut shows he hasn't absorbed much insight as to why the nation has experienced such economic success for nearly a decade.

The Clinton administration's insistence on paying down the national debt as much as possible, and the Federal Reserve's tight monetary policies, have aided the economy's unparalleled growth. It's also important to note that the impact of tax cuts won't be felt for at least a year, if not later, making it questionable that they could somehow quickly ignite the economy. A cut in the interest rates, meanwhile, can have a significant impact. Responsible tax cuts that eliminate inequities in the tax code are welcome, but a massive giveaway proposed by Bush could imperil the economic gains made.

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