PLA has another in-depth analysis of the quandary facing Bush regarding the dismal outlook for the economy:
All courses open to Mr. Bush are fraught with political peril. First, he can do nothing. If Mr. Bush does nothing and the economy goes into a double dip recession or a deflationary cycle he will be blamed for taking no action and being indifferent to the economic suffering of Americans.
If the Democrats have both a spine and a brain, they will feed that perception by proposing a stimulus package that includes items such as 1) extending unemployment benefits; 2) cutting payroll taxes for working Americans; and 3) increasing government spending for such projects as school building repair, infrastructure improvements and funding a prescription drug benefit for seniors. Democrats should propose paying for those projects by rolling back portions of the 2001 tax cut that are not yet in effect and which benefit the wealthiest Americans.