A Sudden Concern About the Economy

President Bush, who has continued his cheerleading about the U.S. economy despite a growing host of ominous indicators, is suddenly expressing an openness for new ideas on how to stimulate growth.

As long as they involve tax cuts, of course.

Sheryl Gay Stolberg writes in the New York Times: "President Bush said Thursday that he was considering whether to propose a stimulus package to shore up the economy, the clearest indication yet of a growing concern inside the White House over rising oil prices, the subprime mortgage crisis and the possibility of recession."

Caren Bohan writes for Reuters: "'In terms of any stimulus package, we're considering all options and I probably won't make up my mind as to whether or not I lay one out until the State of the Union,' Bush said in an interview with Reuters at the White House, referring to his State of the Union address to Congress on January 28.

"A growing number of private economists are worried that a surge in oil prices -- which hit $100 a barrel this week -- and the ripple effects from a sharp housing downturn and subprime mortgage crisis could tip the economy into recession.

"'We are listening to a lot of good ideas from different people,' Bush said. 'We've got our people out there carefully -- not only monitoring this situation -- but listening to . . . possible remedies,' Bush said.

"'I'm concerned about people losing their homes and paying a lot for gasoline,' he added."

So what sort of stimulus might Bush and his aides have in mind?

Peter Baker writes in The Washington Post that, according to an unnamed senior administration official, "the priority would be using targeted tax breaks to increase business investment or consumer spending. 'What everyone's looking at is what is the fastest way to get money out there,' the official said."

Or, as Stolberg puts it: "[I]t is a safe bet that tax cuts, long a centerpiece of the Bush domestic agenda, would be a feature of any administration initiative. And it is an equally safe bet that Democrats, who are contemplating their own economic stimulus package, would object, saying further tax cuts are unaffordable. . . .

"Mr. Bush has repeatedly said economic fundamentals are strong, a theme he is likely to echo Monday in Chicago when he delivers a speech on the economy. But with polls showing that the economy has eclipsed Iraq as the leading concern among voters, and with Democrats warning of a 'Bush recession,' it has become increasingly apparent that inside the White House, there is a growing feeling that he cannot leave the economy to its own devices in his final year as president."

Bush's Plan to Stay Relevant

In his 30-minute Reuters interview, Bush also explained his strategy to remain relevant in the coming year, as attention shifts to the question of who will succeed him. The strategy involves making sure Republicans in Congress don't break ranks. (See my Dec. 13 column, Congress Goes Belly Up.)