The economy: Empty Treasury.(Republicans seem to have no coherent economic policy)(Brief Article)

The anthrax scare should make the administration more inclined to cast as wide a net as possible in the war on terrorism, lest we leave the threat alive. For the rest of us, the best response is to go out and have a drink. Remember that the zealot in his cave has a lot more to fear than we do.

If Republicans have a coherent economic policy, they are hiding it well. They have spent most of the year making Keynesian arguments for watered-down supply-side measures. Thus the tax cut passed this spring was supposed to "put money in people's pockets" to be spent. When Democrats correctly pointed out that cutting tax rates effective in 2006 would not in fact lead to a spending boom, the Republicans were forced to agree to a tax rebate. The importance of improving incentives to work, save, and invest was lost.

The House Republicans' stimulus bill is the same conceptual morass. It accelerates the date at which the spring tax cuts become effective-but not for the top brackets, lest Democrats balk. It cuts the capital- gains tax rate by a puny two points. And it includes another round of tax rebates.

The Bush administration has largely been AWOL during this debate, except to insist on bipartisanship now that we are at war. What's the risk of making its case? That Democrats will stop supporting the war because they dislike Republican economic policy? It's an unlikely prospect, and one for which the voters would punish the offending party soon enough. The administration may hope that the economy will recover on its own, and the drop in oil prices and interest ...