USA HISTORY

Detailed explanation-1: -Bush administration include income tax cuts in 2001 and 2003 and a subprime mortgage crisis in 2007-2008 that led to a period known as the Great Recession. Some major themes of President George W. Bush’s economy policy include economic stimulus, job creation, economic growth, and fiscal responsibility.

Detailed explanation-2: -In a statement released in late June 1990, Bush said that he would be open to a deficit reduction program which included spending cuts, incentives for economic growth, budget process reform, as well as tax increases.

Detailed explanation-3: -Responses to the crisis included the $700 billion TARP program to bail out damaged financial institutions, loans to help bail out the auto industry crisis, and bank debt guarantees. The vast majority of these funds were later recovered, as banks and auto companies paid back the government.

Detailed explanation-4: -The pillars of Reagan’s economic policy included increasing defense spending, balancing the federal budget and slowing the growth of government spending, reducing the federal income tax and capital gains tax, reducing government regulation, and tightening the money supply in order to reduce inflation.