President Bush implemented Fiscal Policy to stabilize the American economy after the 2001-2002 recession?

Question

what exactly did he do and did it work?

Answer 1

Under what rock has your econ professor been hiding for the last 40 years?

In an open economy with floating exchange rates (such as the U.S.), fiscal policy affects only the direction of capital flows and nothing else. Internal economic activity responds ONLY to monetary policy. Implication: presidents are more or less irrelevant; what matters is the Federal Reserve...

This has been common knowledge since 1960s, so much so that its original discoverer, Robert Mundell, got a Nobel Prize for it in 1999...

Answer 2

He lowered taxes, which increased business spending and investment, more money to employ workers, more production, more growth.. People have more money, spend more money, more growth..

The problem with that is, as Albert may or may not be aware of is that is the theory (and your answer to your question) but that is only a model, it does not exactly work in real life. I will explain.

I live in New Zealand. A Labour Government was elected in 1999 (think democratic)

The first thing they did was RAISE taxes.

What happened? well to quote Albert H

"Unemployment at the all time low"
"The stock market is at an all time high."
"These are all facts that can't be disputed, if someone does, they are not credible."

Of course the tax cuts helped, but anyone saying they are the sole reason why the American economy is doing well today are just lying, or stupid.

A host of other factors influence an economy, the US economy (and the world economy through follow on effects) sank because of 9-11 and fear. After a year of no attacks, that fear reduced, and people/business began feeling safer, and started spending money (which they would have anyway without tax cuts, and that would have grown the economy.

The US economy could even be better off today, if there were no tax cuts, having a budget surplus, or less of a deficit would help the economy...

Your answer to your school question is the Tax cuts bit, but if you read my answer, you might understand how the world works, and how really stupid your question you were given is.

Answer 3

He really didn't do anything, and it won't work. Our economy is doomed to implode and go into a depression regardless of any president's actions. If you are really interested in the economy and want to know its true state, read the "Spiritual, Economic, and Political Review" by Mark S. Watson. It's a series of articles that used to be titled "The Coming Economic Depression" before Mr. Watson realized it will also be the start of the Apocalypse, but don't let that scare you away from them. They're highly informative.

http://www.markswatson.com

Answer 4

He lowered taxes.

Unemployment at the all time low in American History.

More Americans own homes than at any time in American History.

The stock market is at an all time high.

These are all facts that can't be disputed, if someone does, they are not credible.

Of course George W did start global warming.

Answer 5

He lowered the marginal income tax percentages, which gave everyone a boost in personal income. All of that is gone now with the Alternative Minimum Tax which is increasing taxes on the upper middle income.