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Unformatted text preview: In conclusion the bush administration raised the national debt by 72 percent, the last raise was executed on October 3 rd , 2008 to a total debt of, New Limit: $11.315 trillion Increase in Limit: $700 billion. By far this bush’s administration was the worst of the United States of America’s history; if we read this report we will recognize that the economic crisis is the fault of president bush and his administration. Here are some case of could’ve caused the economic crisis. What did the president do? He did a few things. He cut taxes really significantly, with the bulk of the tax cuts going to people at the top. … The old Republican line is its fine to cut taxes as long as you cut spending. But he … increased spending significantly. He started a new entitlement program -- Medicare Part D, the prescription drug benefit. He started a very expensive war in Iraq, and even apart from the debate about whether that war was a good idea, he clearly didn't pay for the war. He didn't even put it in his budget in the main way they budgeted, so he didn't really even pretend to pay for it. And the combination of the tax cuts, the war in Iraq, Medicare Part D and some other things meant that he essentially did not run the government as if it needed to make its payments over the long term. He ran it as if it was fine to have a huge deficit. … What were they doing? There are two schools on that. There is the school that they knew what they were doing, and were very much hoping to "starve the beast" -- the idea that if you cut taxes, eventually it will force the government to rein in spending. … That is an argument that historically has little basis in fact, but it's a plausible hypothetical argument. The other argument is they didn't really expect that to happen, but they didn't care too much. The people doing the budgets for President Bush understood that they weren't going to be around to have to balance the budget. That's the sort of conspiratorial argument that some Democrats believe. They believe that basically Republicans now have become the part of fiscal liberals; that they are happy to run up huge deficits and then force the Democrats to clean them up. … [What is] the Bush economic legacy? I think it is hard to take much positive out of the Bush economic legacy. I asked, actually, a number of Republican economists in the waning weeks of the Bush administration that question. I said to them, "What positive do you take out of what this administration did?" Some of them mentioned the reductions of the marginal tax rates, which they think make the economy more efficient. But some of them said to me, "I take essentially nothing positive from this administration." … To me the most disappointing thing about it is that he came into office with some pretty important ideas about reforming the economy, and he really didn't follow any of them. He appointed this tax commission in 2005 to talk about tax reform, and they came out with this really thoughtful report. It was a bipartisan commission; it was run by Republicans but it had really thoughtful report....
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This note was uploaded on 10/19/2011 for the course ACCT 212 taught by Professor Schmith during the Summer '11 term at DeVry NJ.
- Summer '11