New Page in the Script for Paulson: Economy not benefiting all Americans

NYT: A New Page in the Script for Paulson
By STEVEN R. WEISMAN
Published: August 2, 2006


Don Hogan Charles/The New York Times
Henry M. Paulson Jr., the former chairman of Goldman Sachs, gave his first speech on Tuesday since becoming Treasury secretary last month.

Treasury Secretary Henry M. Paulson Jr., delivering his first public remarks since taking office last month, said yesterday that he recognized that the economy was not benefiting all Americans.

“Amid this country’s strong economic expansion, many Americans simply aren’t feeling the benefits,” Mr. Paulson said in a speech at Columbia Business School on the Upper West Side of Manhattan. “Many aren’t seeing significant increases in their take-home pay. Their increases in wages are being eaten up by high energy prices and rising health care costs, among others.”

It was an unusual concession from a high-ranking official in an administration that has spoken only glowingly of recent economic gains and has generally joined with Republicans in Congress by dismissing Democratic concerns about growing economic inequality in the United States as “class warfare.”

On the crucial issue of currency values, however, Mr. Paulson stuck much closer to the traditional script for Treasury secretaries, promising to support a strong dollar. But he offered a hint that he might try to become even more active than his predecessor in dealing with tensions with China over its currency, which many economists say is set artificially low and is aimed at spurring exports to the United States.

Mr. Paulson said that while “a strong dollar is in our nation’s interests,” currency levels “should be determined in open and competitive markets in response to underlying economic fundamentals.’’...

http://www.nytimes.com/2006/08/02/business/02treasury.html

Subject: His predecessor Tony Snow also committed the sin of truth-telling (just before leaving)

Title: Treasury secretary concedes they aren't what is boosting economy
BY KEVIN G. HALL (Knight Ridder) - Posted 5/18/06

Treasury Secretary John Snow conceded Tuesday (5/16) the much-touted tax cuts for capital gains and dividend income aren't driving the economy.

Asked if the tax reductions will pay for themselves, Snow acknowledged they won't. He also acknowledged that economic growth and stock market gains were strong in the late 1990s, when the capital-gains tax stood at 20 percent and dividend income was taxed at rates as high as 38.6 percent.

At a ceremony at the White House, Bush said his tax cuts had helped the economy grow, "which means more tax revenue for the federal Treasury."

Several studies, some written by economists who served in the Bush administration, have concluded the tax reductions mean less money for the Treasury.

or maybe wants to see what getting fired feels like for once in his life. Bushco isn't going to tolerate this kind of talk for long.