To the Point

America's Sluggish Economy

Congress gave President George Bush big tax cuts and Federal Reserve Chairman Alan Greenspan has short-term interest rates at their lowest levels in 45 years, but still the economy is not growing. Since the President took office, 2.5 million people have lost their jobs. Consumer spending has prevented recession so far, but if business investment doesn-t pick up, Bush may see more unemployment than any president since Herbert Hoover. Will next year-s voters be thinking about the war on terror and peace in the Middle East, or wondering where their next paychecks are coming from? We look at the prospects for the economy improving and the political consequences if it doesn-t with market strategists, a small business owner from the state with America-s highest unemployment rate, and journalists from American Prospect and Fortune magazines. Making News: Republican and Democratic Presidential Fundraising As Democrats jockey for next year-s presidential nomination, Vermont-s former Governor Howard Dean has generated a lot of the early buzz among political insiders. Yesterday, he stunned the insiders by generating a lot of money. Jill Lawrence, who follows politics for USA Today, says Dean's $7-million campaign intake topped the Democrat's nine-candidate field. Reporter's Notebook: California Fails to Meet Budget Deadline With its resources, wealth and Hollywood image, America's most populous state is both envied and resented. Last night, its legislature failed to meet a midnight deadline to pass a new budget, leaving California on borrowed money and at the verge of financial and political chaos. Jack Kyser, chief economist at the nonprofit Los Angeles Economic Development Corporation, considers the implications for the rest of the nation.