"This economy is moving and it's our job to keep it that way. Not with more government, but with more enterprise." That statement is from last night's State of the Union speech by President George Bush. It's a sentiment most Republicans share--but many Democrats don't. On "Morning Call" CNBC's John Harwood previewed what looks like a coming battle over the nation's economic health.
As Harwood points out--the president and his party believe in less government action for the economy--while Democrats have already shown how government can get involved--by recently passing a raise in the minimum wage and possible hearings to look at profits for oil and pharmaceutical companies.
In case you missed it, Sen. Jim Webb from Virginia gave the Democrat's response to the president's speech. When it came to the economy--Webb said we live in almost "two different countries" (sounding somewhat similar to presidential candidate John Edwards and his "Two Americas".) Webb acknowledged that the stock market is at an all time high and that corporate profits are up--but that those benefits are not being shared--and that they haven't helped everyone. Webb mentioned the need to still help Hurricane Katrina victims in the Gulf Coast.
Also--Webb contended that Bush's Iraq strategy has had a staggering effect on the nation financially, has led to lost opportunities in the global war on terrorism and has damaged the country's reputation around the world. FYI: The U.S. military death toll in Iraq is about 3,060, and tens of thousands of Iraqis have been killed in the nearly 4-year-old war, which is now costing U.S. taxpayers about $10 billion a month.
Harwood concludes by saying Americans can expect a very large economic argument starting from now and going all the way through the 2008 presidential election.