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Talk about preaching to the choir. President Bush and his clueless team of
economic advisers held a summit at the president's ranch in Crawford, Tex.,
yesterday. This is the ferociously irresponsible crowd that has turned its
back on simple arithmetic and thinks the answer to every economic question is
a gigantic tax cut for the rich.

Their voodoo fantasies were safe in Crawford. There was no one at the ranch
to chastise them for bequeathing backbreaking budget deficits to generations
yet unborn. And no one was there to confront them with evidence of the
intense suffering that so many poor, working-class and middle-class families
are experiencing right now because of job losses on Mr. Bush's watch.

After the meeting, Mr. Bush said, "This administration is optimistic about
job creation."

It's too bad George Akerlof wasn't at the meeting. Mr. Akerlof, a 2001 Nobel
laureate in economics, bluntly declared on Tuesday that "the Bush fiscal
policy is the worst policy in the last 200 years." Speaking at a press
conference arranged by the Economic Policy Institute, Mr. Akerlof, a
professor at the University of California at Berkeley, said, "Within 10
years, we're going to pay a serious price for such irresponsibility."

Also participating in the institute's press conference was Robert Solow, an
economist and professor emeritus at M.I.T. who is also a Nobel laureate. He
assailed the Bush tax cuts as "redistributive in intent and redistributive in

"There has been a dissipation of the huge budget surplus," he said, "and all
we have to show for that is the city of Baghdad."

The president and his advisers could have learned something about the real
world if, instead of hanging out at the ranch, they had visited a city like
Los Angeles (or almost any other hard-hit American venue) and spent time
talking to folks who have been thrown out of work and, in some cases, out of
their homes in this treacherous Bush economy.

The job market in California worsened in July. More than a million people are
out of work statewide, and there are few signs of the optimism that Mr. Bush
is feeling.

Officials at homeless shelters in Los Angeles, as in other large American
cities, are seeing big increases in the number of families seeking shelter
because of extended periods of joblessness. The pattern is as depressing as
it is familiar: the savings run out, the rent doesn't get paid, the eviction
notice arrives.

Tanya Tull, president of Beyond Shelter in downtown L.A., said the percentage
of families in her facility had climbed from about one-third to more than
half because of the employment crisis. The breadwinners can't find jobs, she
said, "so they're losing their housing."

Ralph Plumb, president of the Union Rescue Mission on L.A.'s skid row, said
his agency, traditionally a haven for homeless men with drug and alcohol
problems, is providing shelter for more and more "intact" families. Their
problems are not the result of drug or alcohol abuse, or mental impairment.
They simply have no money. Forty percent of the people at the mission are
there "purely due to economic issues," he said.

Ms. Tull and Mr. Plumb both said an important factor in the rise of homeless
families had been the "reform" of the welfare system. Destitution is the next
stop for people who can't find jobs and can't get welfare.

One of the families at the Union Rescue Mission was featured this week in a
front-page article in USA Today. William Kamstra, who earned $40,000 a year
before losing his job, looks for work each day while his wife, Sue, and their
three children spend the day at a library. They sleep at the mission.

"Homelessness in major cities is escalating," the article said, "as more laid-
off workers already living paycheck to paycheck wind up on the streets or in

That story ran one day after a front-page Wall Street Journal article that
spelled out how sweet just one of the Bush tax cuts has been for those in the
upper brackets: "The federal tax cut, which slashed the tax rate on dividends
and prompted many companies to increase their payouts, is proving to be a
boon for some corporate executives who are reaping millions in after-tax

Some people have reason to be optimistic. It's the best of times, or the
worst of times. Depending on your perspective.
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