Bush Aides, in Shift, Say Oil a Drag on Economy

[Nambe]

CRAWFORD, Texas (Reuters)

President Bush's economic advisers warned on) Sunday that high energy prices have become a drag on the U.S. economy and not a threat to growth, chipping away at Bush's upbeat election-year projections and increasing pressure on him to act.

Treasury Secretary John Snow warned on Friday that, "We're seeing some slowing in the United States directly attributable to high energy prices."

Gregory Mankiw, chairman of Bush's Council of Economic Advisers, went farther on Sunday, warning in a letter published in The New York Times: "High energy prices are now a drag on the economy, as well as a strain on family budgets."

The warnings appeared to be part of a concerted shift in tone by Bush's top economic advisers, who for months have sought to minimize the risk of an economic slowdown in the run-up to the November presidential election.

Bush's economic advisers have long described high energy prices as a threat or a burden to the U.S. recovery, but they said the impact was mostly being felt abroad rather than at home.


Very Good Voter’s Guide

[Emboldened Chimp]

1. Yet another FLIP-FLOP from the Master of Flip-Flops

[redstateblues]

2. Didn't The Wall St. Happy Talkers Say High Fuel Prices Stimulate

the economy?

[gulliver]

3. And who destabilized the Middle East? n/t

[Moderator]

4. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=769235