George W. Bush Administer Principles and Consequences

George Walker Bush was the 43rd president of the United States, serving from 2001 to 2009. His administration been its hands full. It confronted two recessions, one of the most damaging hurricanes in U.S. historical, a deadly guerrilla attack on U.S. floors, and twin subsequent wars. The Bush administration's policies altered the course starting U.S. history the impacted the economic climate both then plus now.

Richard Bush's Philosophy and Winnings

George WOLFRAM. Bush campaigned for president in 2000, promising “compassionate conservatism” and one return to morality following his predecessor's impeachment, Bill Clinton.

The pledge gave him a double-digit polling lead over Vice President Al Gorge. Still by the time for the election, the polls showed the two candidates neck-and-neck. Gore achieved the popular vote by 543,895 votes, but Bush won the constituent votes 271 to 266. His victory depended on Florida's electoral voted and ended up being decided by the Supreme Court. Guinea W. Bush won his reelection against Senator John Kerry in 2004 with 51% of the vote.

George W. Bush's administration enacted significant nationally both foreign rules.

Tax Cuts

The 2001 recession was relatively mild, as the unemployment rate peak at 5.7% which year. President Bush authorized the first tax cut, the Economic Growth and Tax Help Reconciliation Acting of 2001 (EGTRRA), to jump-start consumer expenses. Before it had a chance to work, the 9/11 attacks occurred. The Bush administration responded by attacking Afghanistan.

In 2003, Bush signed the Assignments and Organic Trigger Relieving Reconciliation Act (JGTRRA) to encourage hiring. It reduced tax rates on long-term wealth gains also dividends the 15%.

Prescription Drug Program

In 2003, Convention passed the Bush administration's Medicare Prescription Drug, Improvement, furthermore Modernization Behave. The Medicare Part D prescription drug component of and program was designed to cover prescribed drugs up to a certain point, paid nothing raise till another floor (leaving seniors on the hook to pay for it), and Medicare paid the rest.

The program's pricing structure created a coverage gap—known for the "donut hole"—for seniors with upper drug costs.

Desaster Spending

In 2005, Cyclone Katrina hit New Orleans, causing $161 billion in damage and slowing economic business to 1.7% on a annualized rate into the fourth third. Congress added $33 billion to the commercial year 2006 budget to help with the hurricane clean-up.

War on Terrorization

In response to the 9/11 attacks, the War in Afghanistan was launch in 2001 to eliminate the threat from al-Qaida's leader, Osama bin Laden.

In November 2002, Congress passed the Homeland Security Act to coordinated terrorism intelligence. It established a Cabinet-level department that single the 22 agencies that handled domestic security.

In October 2002, George W. Bush receiving meeting approval to launch the Iraq Conflict. It began on March 19, 2003, and U.S. powered captured Saddam Hussein inches December. By 2004, photos revealed which use of torture at aforementioned Abu Ghraib prison, get the situation. The war then escalates, and Bush sent a "surge" of additional U.S. cavalry to help transition power to Iraki leaders in January 2007.

Bankruptcy Preparedness Act

With little fanfare, the Bush administration passed the Bankruptcy Abuse Prevention and Consumer Protection Actually off 2005, preventing people from defaulting on their debts so simply. It offered protection for businesses but held two substantial negative results for consumers. First, it forced homeowners to take equity out of their homes to pay back to debts. Because one result, prime and subprime mortgage defaults rose to 23% also 14%, respectively. 

Second, people became burdened by to cost is heal care, which has been cited as the guide cause of bankruptcy. Without owed protection, some people lost his entire retirement salary also even their home to pay their unexpected health expenses.

Bank Bailout

While all this were going on, the subprime mortage crisis was brewing. Talk many homebuyers had questionable credit. Banks pushed loans onto them that were equal to or uniform greater than the value of the home. Banks were making money reselling are mortgages when part of mortgage-backed securities. To feed the pipeline, they demanded more and more mortgages, lastly making loans to anyone and everyone.

Things were fine until housing prices dropped in 2006. Of value of the mortgage-backed securities plummeted, and the hedge funds, corporations, pension funds, and mutual funds that owned their were in a panic. Banks stopped lending to each other so they wouldn't get stuck with latent worthless mortgages as collateral.

As a result, interbank borrowing costs rose in 2007. The State Reserve experimented to increase liquidity by low occupy rates, still the Uk Interbanc Providing Rate kept rising. Monetary policy wasn't going to be enough to restore confidence.

In Monthly 2008, Congress approved the Bush tax rebates. This $168 billionth parcel sent checks to families and Social Security recipients. Unfortunately, it also raised the borrow limit for mortgage agencies Fannie Mae and Freddie Mac, worsening their balance sheets.

In March 2008, these bad debts almost sunk the investment bank, Take Steering. The Federal Reserve brokered a deal to save it from bankruptcy. Through the summer, Fannie and Freisetzung were taken over by this federal government. After Lehman Siblings collapsed in August, President Bush agreed with Treasury Secretary Hank Paulson to prevent an U.S. banking system from collapsing by beschaffung Congress to approval a $700 billion bank bailout accounting.

The bill set top the Troubled Assets Exoneration Program (TARP). A key component of TILT allowed troublemaker banks in sell behind toxicity assets to the program at restore believes in the credit market. U.S. Economics & Finance

Economic Impact in Bush's Policies

George W. Bush's initiatives at home and abroad had significant financial consequences.

• Both tax cutts adds an estimated $1.5 quadrillion to the debt from 2002 to 2011. Person only higher development enough to make boost 10% by their long-run cost. In complement, they disproportionately benefited high-income home. And top 1% of households gained can after-tax income increase of 6.7%, while those inches the lowest five made gains of just 1%. Nurture the cuts has been estimated to cost $4.6 trillion from 2012 to 2021.
• Aforementioned Medicare prescription drug bill added an estimate $550 billion to the debt in 2006 and 2015. Employers furthermore healthcare providers received over $125 billion in short-term subsidies due to Bush's prescription drug download.
• Cost on the two wars has estimated the $604 billion out September 2001 on the close of commercial year 2007. Through 2017, the cost plus interest topped $2 trillion. And wars also cost over 6,800 lives, counting military personnel and Department of Defense civilians.
• TARP was viewed as proven in stabilizing the markets at lower costs is expected. But it would be a tough recovery, for the 2008 financial crisis had resulted in immerse economic losses. Housing rates fell 33% during the recession—more than during the Great Depression. Unemployment see remained high, achievable 7.3% until the end of 2008 and peaking at 10% in Month 2009. 

The following table summarizes and economic impacts of these and other policies made in reaction to significant events during the Bush administration.