Economics Professors Attack Bush's Address

Professors in the Department of Economics yesterday criticized the President's State of the Union Address, saying that the chief executive's economic proposals hold little promise of pulling the nation out of the recession.

The economic plan introduced by Bush in Tuesday night's speech includes two particularly controversial measures: a small tax cut for the middle class and a reduction in the capital gains tax. Several professors said that the two proposals would be largely ineffective.

"To me, that's just band-aid economics," said Professor of Economics David S. Landes. "He doesn't have a clue to an economic policy."

"There's very little evidence that either of the [tax] cuts will be particularly effective," said Benjamin M. Friedman '66, Maier professor of political economy. "I thought it was pretty pale stuff."

Other professors were barely more charitable.

"It's a mistake to reform the capital gains tax without taking other action, "said Wells Professor of Political Economy Jerry R. Green.

"For example, the investment tax credit...could be stronger and could be combined with...IRAs [Individual Retirement Accounts]," added Green, who teaches a graduate course on risk-bearing in the American economy.

But one professor interviewed yesterday said he saw some promise in the proposals.

"I guess I'm of the view that every little bit helps," said Richard N. Cooper, Boas professor of international economics. "The fact is that consumers seem to be in a very cau- tious mood."

While Bush received mostly negative reviewsfrom professors for his economic plan, he waspraised for his proposals to cut defense spending.

Dillon Professor of International AffairsJoseph S. Nye said the President's proposals tostop production of the B-2 bomber and thePeacekeeper missile would make the nation and theworld more secure.

"I think [the arms cuts] are sensible," saidNye." I do think we're much safer."

Regardless of whether they supported Bush'sproposals, many of the professors said they weresurprised by the tone of his speech.

His statements would sound normal if he wassome new President just arriving in office," saidFriedman, chair of the Economics Department.

"It was quite bizarre to hear President Bush,whose team has been in the White House for 11years, talking about overregulation ingovernment," Friedman said

While Bush received mostly negative reviewsfrom professors for his economic plan, he waspraised for his proposals to cut defense spending.

Dillon Professor of International AffairsJoseph S. Nye said the President's proposals tostop production of the B-2 bomber and thePeacekeeper missile would make the nation and theworld more secure.

"I think [the arms cuts] are sensible," saidNye." I do think we're much safer."

Regardless of whether they supported Bush'sproposals, many of the professors said they weresurprised by the tone of his speech.

His statements would sound normal if he wassome new President just arriving in office," saidFriedman, chair of the Economics Department.

"It was quite bizarre to hear President Bush,whose team has been in the White House for 11years, talking about overregulation ingovernment," Friedman said