If Bush were earnest he can save Christmas

The McClellanitis of Paulson not withstanding - he asked for the Bazooka
and now he says he is unwilling to fire it??!! - Bush can still produce a final
hurrah before he leaves office after 8 controversial years of good intention
but bad execution. And it is not that he will leave without humility or
a sense of not living up to the expectations set for the "Compassionate
Conservative". He has been humbled by the events of the last 8 years.

That said, it is his final chance. And the answer lies in sending to Congress
a stimulus bill that includes a Social Security Tax Holiday for the final two
months(not Medicare though) - fully included this would be 12.2%
and could pull together the kind of turnaround that will make Paulson's
buddies in Goldman Sachs who have predicted a deep recession cringe.

Yesterday, I thought Suze Ormon was going to cry on camera. It was the kind
of question that would have caused her to cringe, "Should I max out my credit
cards (or my emergency fund) to give my children a good Christmas?" and
she was quick to recover to say, "Give them your happiness". While the
American middle class is told that its auto-industry must be saved, even
though the CEOs came in a private jet to get their tax dollars, it is important
to ensure that the economy does not deteriorate into a Japan style deflationary
spiral replete with 9% unemployment(or 8.5% as Nouriel Roubini would have it)
and let the future of the middle class be forever damaged.

Bush should be aiming this stimulus squarely with the aim of reducing the impact
retail faces. You might ask why Social Security needs to bail out the economy -
well, it is Social security that would get the most back from it - the Social Security
system has the most invested in a robust economy with a rapid return to full
employment. Saving retail would strongly ameliorate the situation and bring to
bear the chance that the economy might return. Add to this a common sense
tough love bail out of the Auto industry and Bush could leave the White House
like his father once did and honestly say, "I kept the faith".

As a demand sider, I would find that the supply siders including Larry Kudlow
would agree that this is a good mustard seed. As the Obama administration
mulls its demand side actions, it should not be after much disruption in the
economy has occurred. Presently, deficit spending is necessary. The states are
maxed out, the Consumer is under tremendous pressure. Social Security offers
the most sensible bastion of hope.

If Bush and the Democrats could only agree....