Its not the idea of a 35 hour work week. The fact is by making it a defacto state policy, the costs of employment go up. All those benefits you earn now effectively cost the employer more for the amount of work you do. If you can finish all your work in that period of time, more power to you. But in general, this results in a drop in overall productivity.
The problem with their policies is that it has resulted in high unemployment, lower per capita income, and a general economic malaise that hits all classes.
As for Bush''s economic genius, that was obviously tongue-in-cheek.