Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

Did the 4 Trillion in tax cuts by the Bush administration sink our economy and if so or not, why?

18 Answers

  • Daniel
    Lv 7
    1 decade ago
    Favorite Answer

    Yes it did.

    That and out of control WAR spending for illegal wars and also no budget cuts. ALL DONE BY THE REPUBLICONS!

    So, the republicans cause our crash and now Obama somehow in 21 months has spent so much money. They do not connect the failed economic policies of Bush that now bring in less tax revenue as the problem with the constant draining of our money by the wars, tax cuts and spending.

    The health care bill actually DECREASES the deficit.


  • Anonymous
    1 decade ago

    no they didn't. tax cuts always help an economy, that is of course if you can secure unlimited loans/deficit spend. otherwise, if you were forced to balance your budget, you would have to compare the value of tax spending vs the spending that would replace it if the taxes weren't there.

    on a purely economic level, and the reason why economic progressivism exists in america (democracy) is that wealth transfer from rich to poor has the effect of increasing GDP. Understanding this is simple. A poor person spends 100% of their income. A rich person spends a far smaller percentage than them as well as the middle class. For this reason, some people on the left like to do social programs. They can justify helping poor and middle class folks and the result is a bigger economy. Who gets rich in a bigger economy, the rich. The idea that the rich "lose" is false. In no era in our history, when taxes were far greater than they are now, has the gap between the rich and poor ever shrunken.

    The argument against it isn't one based on "best"ness or GDP size. The argument against it is whether or not it is fair. Taxing is a constitutional granted authority of government. But does that make it fair? No. But we have a government for more reasons that simply establishing fairness. Nature works on a very free market system but the physically weak don't like it. No one wants to be told what to do. Somewhere in between there is a happy medium that most people will like. Whether or not we find it will be an interesting question.

    What hurt the economy during the Bush administration was the housing implosion. The simplest explanation of it is that Wall Street figured out a scandalous way of exploiting poor regulation. Some say that if we hadn't deficit spent through that time, the collapse wouldn't have been as big or taken as long to occur. If this is true, it sucks especially bad. It means we borrowed 4 trillion dollars, invested it in crap, the crap disappeared, but we still owe the 4 trillion. ouch.

  • 1 decade ago

    Tax cuts wouldn't responsible for sinking the economy. While there are much more efficient ways to stimulate the economy, tax cuts cannot be blamed. Tax cuts do increase the deficit and national debt, but it is conventional wisdom that in a poor economy, you must spend to stimulate.

  • 1 decade ago

    HELLO!!!!!!!!!!!!!!!!!!!! CUT taxes during a WAR? Who in the hell in their right mind does that? Ask all the people that lived through WW2 till now if the had breaks.

    The wars never had any funding except from the Chinese credit card.

    @theplant: Tax cuts during a WAR? You better go back and read up on American history.

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  • 1 decade ago

    NO. The Housing situation, Bankers, Speculators on Wall street. Congress esp., charlie, nancy, harry, to name a few...millionaires to blame.LOL

    The Congress in 1995 ish, during the Clinton Admin. repeal of the Glass/Steagal Act, allowing Financial institutes or brokers, and banks to work as one entity/company...allowed the banks to take mortgages and bundle 20 or more together and sell as mutual is complicated. But when the democratic congress came around(during the Bush admin) after repeated in-action of the Congress urged over 4 times to fix the growing problem By the Bush Admin.

    ..with these mortgages that problem continued to increase, the Government took over Fannie and Freddie or Mae and Mac, of course this action gives the Federal Gov. ownership of many homes,hmmm.

    More of a reason.

    .... the 800 "B" illion dollar stimulus/give away to Special interest groups.

    Tax cuts are proven to grow the economy, check history it does repeat itself.

    Check out History and make your own conclusions, all Presidents are a disappointment to everyone in every way , But remember the Congress has MUCH to do with the economy.

    God Bless All Americans, Thank a Veteran.

  • Anonymous
    1 decade ago

    No, but I'm sure your liberal teacher told you that happened.

    Tax cuts means we have spend. When money circulates, it generates revenue through sales tax and eventually someone else's income tax (whoever you bought stuff from).

    When taxes are raised, the Gov't gets the money...early in most cases (since it comes out of our checks every week). Then it never goes back into the economy. It only goes to grow government programs.

    There are already way too many gov't programs. The redundancy is ridiculous. For every subject, there's like fifty programs that do the exact same thing. When you have that many people doing something, everyone thinks the other guy is doing it, and nothing gets done.

    The law of Diminishing Returns plays a part in that. Two people get it done twice as fast, three people get it done 3 times as fast, but five people only get it done 3 1/2 times as fast, and 10 people only get it done 4 times as fast.

    When it's gov't programs, it's always 100 people doing a 2-person job.

  • Foxx
    Lv 6
    1 decade ago

    Nope, the wars had a big part of it-but the worse thing to the economy was actually President Bill Clinton's decision in 1998 to order Fannie Mae to enact lower standards for home loans, which caused the foreclosure debacle we are in now. This set off a chain reaction-the tax cuts would not have altered this-they likely helped stave off the calamity for about 5 years.

  • 1 decade ago

    No. The tax cuts lead to a period of economic growth with unemployment around 5%.

    That all changed when the dem/libs took control of Congress in Jan. 07. When dem/libs took the White House and absolute control of both Houses of Congress, they then went about further destroying the economy.

  • 1 decade ago

    It probably set up the expectation that greed is fine no matter the cost to others. There are those who wish to destroy the middle class and convert this country into a third world dump.

  • Anonymous
    1 decade ago

    4 Trillion????????

    You little kids are funny.

    Grow Up, Get a Job, and then you'll like Tax Cuts.

    4 Trillion?????? How silly!

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