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"Here lies the United States economy, 1502-2008." This may sound silly but it mine as well be engraved over the door of the Federal Reserve and the New York Stock Exchange. After taking over our country riding the Clinton-era budget surplus and the millennium boom in the economy, President Bush has managed to place us on the fast-track to a major economic recession. Whether by his own actions, or a lack of reaction to major signs of an economic downturn, one thing can be certain; it was the leadership of President Bush that put our economy in this dire situation.

One would think though that this type of recession would be expected after years of economic boom. Why should we be worried after our salaries, investments, and house values have jumped so dramatically in recent years? The answer is simple these monetary impacts on our life really haven't matured as much as we expected. Even if the boom did help our personal situation, new evidence shows that much of the middle and lower parts of our population were actually hurt by the boom.

This news is surprising especially considering the amount of time President Bush has dedicated to touting his ability to stimulate the economy. His "brilliance" was actually a stroke of pure luck. Growth in interest-only loans and adjustable rate mortgages during the Bush administration sparked home sales and led to a few year boom in the economy. Also initial war spending drove up profits in the defense sector but now that the war is dragging on, the traditional strength of a "war economy" is losing steam and growing weak.

Today's news of an economic stimulus plan may not be the answer either. The impact of increased spending wont appear for at least six to twelve months and the result is not guaranteed to be positive. Are we simply postponing the inevitable? In the opinion of many the answer is yes.

The bottom line is no amount of haphazard government intervention will prevent the large-scale recession that is currently looming. Unless the government acts broadly and decisively in the near future to boost consumer spending and stimulate job and wage growth, the economy will only continue down a long path of recession that has already begun.

Learn more about this author, Craig Simoneau.
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