Jobs, Bush, and the economy

One of the poorest job performances of the Bush Administration has been on the economy. Not on policy; they have done fine there. The failure has come in explaining to the American people what has happened to us.

Our economy generates about $11 trillion of activity each year in Gross Domestic Product. Of that, the federal government takes about 23% per year, or about $2.5 trillion, leaving $8.5 trillion to fund state and local taxes, pay private sector salaries, fund mortgages, car loans, and credit cards, and invest in new business expansion.

From March of 2000, when the stock market technology boom first showed signs of faltering, to the bottoms in 2002, equity markets lost over $4 trillion. That was money that just disappeared from our economy, and was no longer there to fund our growth. Then, on 9/11, we took another direct hit of roughly $2 trillion in economic losses. Between the two, we lost at least $6 trillion.

This happened over a period of two and a half years. Now, suppose that over a similar period, you were without income for eight and one-half months. That was the effect of these economic hits. Would things get tough?

Now, suppose again that during this period there were certain major expenses that you just had to undertake, despite the loss of income. Wow, are things getting tougher?

Well, that is exactly what we have just been through as a nation. All things considered, we are doing remarkably well, and our economy is finally resuming the strong growth we enjoyed before these terrible losses.

I think most people understand this, in their hearts. I would still feel better if the Bush Administration articulated it more forcefully.