The GDP growth for Quarter 2 of 2008 was negative 3/10th's of one-percent, and that was the worst in 7 years? Who knew?
If you watch the news or read the paper, you would have thought Americans had been standing in Bread Lines and selling Apples for 5-cents ever since George W. Bush first took the oath of office. It turns out though that the economy has been growing quite impressively since President Bush's tax cuts went into effect, even through the first two years of the Housing Downturn. But soaring energy costs finally brought the growth to a halt, and the credit crisis is likely to deliver another body blow to the U.S. economy. All during the boom, George W. Bush rarely got credit for the good GDP growth.
So, which Bush policies led to the Housing Slump or the Rising Cost of Energy? Well, to be fair the Bush-appointed Federal Reserve Chairman has continued the weak-dollar policy of maintaining Fed interest rates at artificially low rates, and the weak-dollar has contributed to rising energy prices. But that begs the question, "would a Democrat-appointed Fed Chairman raise interest rates? Bush has many critics for allowing a weak dollar, but no political alternative advocates policies that would strengthen the greenback.
What about energy supply and demand? President Bush has tried for seven years to open America's energy resources to the market supply, only to be continually thwarted by Democrats in the U.S. Senate. Scarce supply of Oil and Natural Gas and the high energy prices that result, are a result of Democrat policies, plain and simple.
And the Housing Slump. Another supply and demand dislocation. Demand was driven up by the addition of buyers to the market, who were in many cases unqualified to repay mortgage loans. Why were these risky loans granted? To fulfill Democrat "Affordable Housing" policies, made possible by Government Sponsored Entities Fannie Mae and Freddie Mac -- NOT Free Market Capitalism. How were these risky practices allowed to continue until the bubble burst? Answer: Chris Dodd, Barney Frank, Congressional Black Caucus.