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...goods act as a brake on domestic consumer spending, which Korea badly needs to boost to revive its economic growth. Recent data suggests that South Korea may be entering a period of "stagflation," in which slowing economic output is accompanied by rising costs. The ruling Uri Party has proposed tax cuts to help spur domestic consumer and corporate spending. But export growth slowed to less than 30% year on year in August, making it less likely that the country can reach this year's target GDP growth of 5%. In this precarious situation, a spike in oil prices might well...

Author: /time Magazine | Title: Crude Awakenings | 9/6/2004 | See Source »

...lead, and he has, mandates be damned. Members of his team came into office saying they wouldn't be day traders in the marketplace of ideas but would stick to first principles, and with a few conspicuous exceptions, they have. The economic landscape changed, but Bush's faith in tax cuts has not. When he did reverse course, on campaign-finance reform or creating the Department of Homeland Security, he did it so brazenly, without explanation or apology, that even caving was portrayed as an act of bold leadership. Above all, he has defended his decision to target Saddam Hussein...

Author: /time Magazine | Title: Inside The Mind Of George W. Bush | 9/6/2004 | See Source »

...Bush's math, you can change your tactics, but you pay a price for changing your principles and can gain capital by toughing out a fight, even if you lose. He cites the lessons he drew from his quixotic crusade as Governor of Texas to reform the state's tax code: in the end he feels he lost a battle and won a war, that voters credited him with attempting an impossible but worthy task. "I had earned political capital by spending it," Bush observed in his account of the showdown. He is less likely to cite the searing lesson...

Author: /time Magazine | Title: Inside The Mind Of George W. Bush | 9/6/2004 | See Source »

...some controversial judicial nominees. Nothing doing, Daschle said. After the breakfast meeting broke up, Lott pulled Bush and Cheney aside and said, "That's the real Tom Daschle you just saw." Daschle felt he had also seen the real George Bush when the President insisted on pushing through another tax cut, with or without the Democrats on board. Soon Cheney went on TV denouncing Daschle and the Democrats as obstructionists in perilous times. While Bush was characteristically careful not to say a disparaging word, the rest of his team fired away. Hate mail began pouring into Daschle's office...

Author: /time Magazine | Title: Inside The Mind Of George W. Bush | 9/6/2004 | See Source »

...indeed. Buying short-term prosperity by goosing the economy with heavy borrowing is no trick at all, yet it's not clear that Bush has pulled off even this (except the borrowing). His party has controlled Congress for most of his term. Aside from the traditional Republican wealth-friendly tax cut, can you name a single major successful legislative initiative? O.K., prescription drugs for seniors. Starting in 2006. If it works, which many experts doubt...

Author: /time Magazine | Title: Viewpoints: The Case Against Him | 9/6/2004 | See Source »

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