|
|
Article: ON CAPITAL SPENDING, BUSH MUST CONFRONT FEAR FACTOR
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- January 19, 2003
- Author:
CopyrightCopyright 2003 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
|
To revive the economy, President Bush's economic team must spur
capital spending.
Unfortunately, its current economic revival plan misses that mark,
focusing on tax cuts and tighter corporate governance - a better
political strategy than an economic one. Through tax cuts Bush lets
individuals and companies keep more of their earnings in exchange -
he hopes - for votes in 2004. Tighter corporate governance sponges up
citizens' anger over the $7 trillion lost in the stock market since
2000, fraud-induced bankruptcies such as WorldCom and Enron, and
analyst and accountant conflicts of interest.
But it also bottles up CEOs' urges to take risks.
To date, Bush's plan has stanched a GDP plunge - ...