by John M. Curtis
(310) 204-8700

Copyright May 1, 2008
All Rights Reserved.

cting clueless about skyrocketing gas prices, President George W. Bush blamed Congress for the economic mess causing misery around the country. Bush said he was “open to new ideas” but hasn't once admonished the oil industry for gouging businesses and consumers, reaping record profits at a time of economic upheaval. Bush acted oblivious to the destructive effect of the Iraq War on the U.S. economy. Spending $12-16 billion a month, racking up nearly $1 trillion and piling up record deficits have deflated the U.S. dollar, inflating the price of oil. His economic advisors have repeatedly told Bush the Iraq War is wrecking the economy and diminishing chances of recovery. Slashing interest rates can only go so far when runaway spending on the war weighs on economy. Encouraging more oil production or drilling in the Alaska wilderness won't fix the problem.

      Bush refuses to face reality, preferring instead to blame Congress. “If there was a magic wand to wave, I'd be waving it, of course,” Bush told a White House Rose Garden informal Q&A. “But there is no magic wand to wave right now. It took us a while to get to this fix,” making yet another non sequitur. Producing more oil won't solve the Iraq's $12-16 billion monthly hemorrhage to the U.S. treasury. When Bush talks of a magic wand, he's actually talking about what it will take to change his thinking. He has no “fix,” because all his economists have told him he must end the war to save the economy. No matter what the Federal Reserve Board does to loosen credit, long-term recovery can't take place until the war ends. No economy can absorb the astronomical price of rebuilding another nation's economy without serious repercussions, especially devaluing the U.S. dollar.

      U.S. economic misery makes running for president a bummer for Sen. John McCain (R-Ariz.) whose campaign asks the American people to follow four more years of Bush's economic and foreign policies. McCain should enjoy his standing in the polls now while Sen. Hillary Rodham Clinton (D-N.Y.) and Sen. Barack Obama (D-Il.) bloody each other en route to the Democratic nomination. Both have the right economic fix: Ending the Iraq War. “It's a tough time for our country,” said Bush, showing no willingness to face the music and change course in Iraq. Handing out rebate checks won't fix Bush's extravagant fiscal policy that commits the U.S. treasury and military to nation-building, something the country can't afford. Most voters now view the economy as the No. 1 campaign issue. Voters haven't yet linked the country's economic survival to ending the Iraq War.

      Federal Reserve Board Chairman Ben S. Bernanke is caught between a rock and a hard place, slashing interest rates, while, at the same time, recognizing that White House fiscal policy prevents economic recovery. Reluctant to admit the economy was in recession, Bush finally acknowledged the obvious. “You know, the words on how to define the economy don't reflect the anxiety the American people feel,” said Bush. “You know, the average person doesn't really care what we call it,” still refusing to admit the economy is in recession. “I think they'll show we're in a very slow economy,” Bush acknowledged but offered no way out. Bush's approval ratings hit an all-time low April 11 of 28%, the lowest in modern history. His coattails only hurt McCain heading into November. It's ironic that Bush's former strategist Karl Rove keeps doling out free advice about how to succeed.

      It's beyond outrageous that the White House blames Congress for the price of oil and foot-dragging on the economy. Since the mid-year elections in 2006, the newly seated Democratic Congress has tried almost everything to end the Iraq War. Bush has fought tooth-and-nail to keep the war going, despite the pernicious effects on the economy. Democrats are content to let the flagging economy strangle GOP chances of capturing the White House. Both Hillary and Barack share the same economic fix of ending the Iraq War. Clinton plans to go primetime into the “No Spin Zone” on enemy territory April 30 on Fox News' “The O'Reilly Factor,” trying to reach North Carolina and Indiana voters before next Tuesday's primary. Hillary hopes to convince more conservative Democrats to vote for her, the exact plan advocated by Rush Limbaugh's Operation Chaos to torpedo Obama.

      Bush's refusal to face reality and make changes to his Iraq policy has pushed the country into recession. Slashing interested rates or issuing rebate checks can't reverse his extravagant fiscal policy that spent too much of Gross Domestic Product on rebuilding Iraq, devaluing the U.S. dollar and driving oil prices to record highs. Fixing the U.S. economy involves ending the Iraq War, implementing a realistic fiscal policy, reducing deficit spending and setting new domestic priorities. Forcing the Fed to continue slashing interest rates, issuing temporary rebate checks and drilling for more oil won't reverse irresponsible spending pushing the economy into recession. Instead of diverting attention to Iran, the White House should find a realistic exit strategy—the only sure path to fixing the economy. Waiting until Inauguration Day will only increase the pain and delay economic recovery.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.

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