Letter: Interest rates, not tax cuts, revived economy

Monday, Jan. 26, 2004 | 8:46 a.m.

President Bush takes undue credit for reviving the economy from the longest recession since World War II.

What revived the economy was Alan Greenspan, the man who first revived our economy after the reign of George the First. During the current reign of George the Second, he again revived our economy, this time by lowering the federal discount interest rate to 1 percent. As a result, home mortgage refinancing put hundreds of dollars, each and every month, into homeowners' pockets to buy additional goods, services and for additional savings.

The stock markets were uplifted as businesses can now expand capacity at lower costs and consumers have more money to spend. Finally this lower interest rate devalued our dollar in international markets. This devaluation allows our businesses to compete more effectively and to export more profitably and with higher volume.

Don't for one minute think that the most recent and miniscule one-time tax cut for the middle and lower class made any lasting effect. The bulk of all Bush tax cuts went to wealthier individuals and to corporations who neither benefited nor enhanced the economic well being for the majority of America's population. President Bush was a participant, not a economic leader.

If one person is deemed responsible for leading us out of a recession, it's Alan Greenspan, chairman of the Federal Reserve.

RICHARD C. RYCHTARIK