Panic in the Street -- The Wall Street Meltdown

Wall Street is melting faster than the polar icecaps. Savings and retirement accounts are evaporating faster than an ice cube in a microwave. America’s wealth is being siphoned off quicker than a keg of beer at a frat house. George W. Bush’s party is almost over, but the national hangover is just beginning.

As George Soros observed, we are entering one of the intensive periods of wealth destruction since the Great Depression. The value of the dollar is plummeting, inflation is rising, economic growth is stagnating, unemployment is increasing, and the stock market is tumbling.

History will probably blame all this on George W. Bush, but in fairness he’s only part of the problem. Besides, Forty-three will have to shoulder responsibility for the Iraq debacle, the bungled response to Katrina, the torture and abuse scandals at Abu Ghraib and Guantanamo, the failure to recognize and respond to the challenge of global warming, and the unraveling of the Republican Party. There’s only so much blame one person can handle.

Still, the unfolding financial catastrophe represents the complete discrediting of the economic philosophy of conservative Republicans like Bush. Supply side economics (the notion that tax cuts are self-financing) and Laissez-faire economics (the idea that markets are self-regulating and self-correcting) are as officially defunct as Bear Stearns, Merrill Lynch, and Lehman Brothers.

Everyone likes tax cuts and rebate checks. But if you cut taxes and fail to cut spending you increase the deficit, which amounts to a tax increase on future generations. Rebate checks are nice too, but there are only two ways the government can afford to send you money: 1) borrow or 2) raise taxes. If you think about it, George W. Bush really made sense when he justified his tax cut plan by saying, “It’s your money, you paid for it.”

George W. Bush has presided over the weakest economic and jobs growth rates in decades. To put things in perspective, Bill Clinton presided over an economy that created over 20 million new jobs while George Bush’s administration as presided over just 5 million jobs created. Of course, Clinton’s exceptional jobs creation numbers were achieved while he raised taxes and balanced the budget. Bush, on the other hand, inherited a budget surplus and managed to turn it into the largest deficit in history.

Thanks to the Bush administration, America now owes a trillion or two (or three) to pay for the Iraq War. America is on the hook for a couple of trillion from assuming the obligations of Fannie May and Freddie Mac. And let’s not forget the expense of Bush’s Medicare package, a corporate welfare boondoggle that should cost taxpayers another trillion or two. Hey, a trillion here and a trillion there. Pretty soon we’re talking about real money.

The myth of the free markets has obscured a predatory form of crony-capitalism where government insiders steer corporate benefactors to the public trough. Enron was just the canary in the coalmine. George W. Bush has cannibalized America with his socialism for the rich policies.

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