Is President George W. Bush following Keyne's theories to overcome the U.S. recession?

Answer 1

First, President Bush (or anyother president) has little effect on the Economy---unless he were to shut economic trade (no import/export---or print obsceeen amounts of $$$).

However, President W. Bush does have an advantage this Presidency since the Great "Alan Greenspan" (former Chairman of the Federal Reserve Board) did resign. This left Pres. W. Bush an opportunity to appoint the next Economic measures and informer for the next 12 years. This man is Dr. Ben S. Bernanke <1>.

Dr. Ben S. Bernanke does favor "Keyne's" economic tools to gague and monitor the economy. However, the economy moves in cycles, so the Chairman of the Federal Reserve's position really is to study it and try to lessen the impact of waves ... they are the primary financal advisor to the president.

"Bernanke is clearly in the Keynesian camp on taxes, holding that they should be reduced during times of slack demand and increased when economic growth reaches its natural “limits.” While Keynesians see tax cuts through a demand-driven, short-term stimulus prism in which their impact gradually recedes, supply-siders encourage marginal rate cuts for their long-term (and continuous) incentive effects on economic activity. The distinction between the two schools of thought is crucial, particularly given the growing influence of the Fed on Capitol Hill." <2>

Answer 2

Keynes believed governments should spend money they don't have.

In "The General Theory of Employment, Interest and Money", Keynes' basic idea was simple. In order to keep people fully employed, governments have to run deficits when the economy is slowing. That's because the private sector won't invest enough. As their markets become saturated, businesses reduce their investments, setting in motion a dangerous cycle: less investment, fewer jobs, less consumption and even less reason for business to invest. The economy may reach perfect balance, but at a cost of high unemployment and social misery. Better for governments to avoid the pain in the first place by taking up the slack.

All presidents from FDR on have run deficits during slow economic times. However, the tax burden has gotten to big that there isn't enough capital left to invest in the private sector. By cutting taxes, President Bush has fostered a strong economy, even though we're at war.

Answer 3

No. to the extent that Bush is applying any formulated theory of economics, it is that of Milton Friedman, commonly called "trickle down economics."

However, he is more driven by conservative social and governmental ideological views which do not always follow economists' views. Bush's example is Ronald Reagan.

And Bush so far has managed to work WORSE results than the failed principles of "voo doo" "Reaganomics."

EDIT:

Keynesian economics involves more than deficit spending - it includes monetary policy and many other mechanics of a government-economy interaction. Presently the tax burden in the United States is the LOWEST of all developed nations in the world. It was that way before George W. Bush took office.

In fact, one of the reasons that the recession of late 2000 - 2003 did not get worse is because the prior Clinton Administration had generated a government surplus - the first in decades. As a result, the US government had begun reducing its debt and putting more money into the economy. The absolute worst condition the economy faces today is the vast amount of debt, particularly from unparalleled government borrowing, sucking money out of the economy. Combined with climbing interest rates, this situation almost promises a recession in coming months.

Bush fueled the economy using debt - by artifically depressing interest rates . Consumers, industry and government all went into debt - and that helped maintain marketplace activity. With more government borrowing and rising interest rates, the economy will contract.

Bush's tax cuts did very little - almost nothing, in fact - to help the economy. They affected a tiny percentage of the population and did not spur new investment. The Bush policy is a fiction.

Answer 4

ok ... enable's seem on the President formerly Bush ... Clinton ... aside from mendacity and telling those that Monica did not blow him what did he do this became so undesirable ... hummmmmmm .... enable's see .... be the 1st President EVER to circulate away place of work with a funds surplus ... sure ... a surplus. circulate to the single formerly him ... Daddy Bush. He wasn't that undesirable and that i'm making a guess that he thinks his son became a shame. How approximately Reagan ... wish i'm unlikely to far into the previous for you ... Reagan became an excellent President yet once you easily need somebody responsible for the worries now we've he merits as much as Bush Jr. formerly Reagan ... who became it ... do you even understand? (It became Carter ... BTW) the country became in a large number ... government regulation over each little thing became choking out company so what does Ronnie Ray-Gun circulate and do ... he eliminates as lots government regulation that he can hoping that Wall highway will artwork on the "Honor device" and police itself ... too undesirable that the persons on Wall highway and super company have not got a clue what the understanding "Honor" ability. the completed mess got here finished circle decrease than Bush Jr. and he did not something to end it yet take us to conflict because of the fact of a team of lies and make this u . s . the giggling inventory of the international. there's a easy trend right here ... all regulated makes a large number ... no regulation makes a large number ... can not every physique see the middle floor right here. government has to have a finger interior the pie even nonetheless it could not have this is finished hand interior the pie ... that's what Obama is attempting to do. Be high quality if people who got here in this talk board knew merely what the hell they are speaking approximately ... to lots to wish for nonetheless i think.

Answer 5

John Maynard Keynes is no longer the economic model to follow. It ended with Kennedy when he became a supply side enthusiast

Answer 6

What recession?