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The biggest problems with this administration's economic policies are their long-term effects. Of course, it's always difficult to predict the future, but there are reasonable projections that can be made.

The Economist has put out a special issue on America, and in this issue they make just such a projection, and put a stake on what it will mean:

The economic consequences are indisputably negative. Big budget deficits reduce America's already abysmally low saving rate. As the economy's slack is worked off, Uncle Sam's demand for dollars is likely to crowd out private investment and reduce long-term economic growth. Even if the global capital market helps out, America is already enormously reliant on foreigners to fund its spending: the current-account deficit, the measure of annual borrowing from foreigners, is at an historic high of 5.1% of GDP. Big budget deficits will aggravate these external imbalances and so raise the risk of financial volatility, even a dollar crisis. Over the next few years, that is perhaps the biggest risk that Mr Bush's fiscal policies pose for the world economy.