Economic Woes Facing the US – Economics Research Paper (200 Level Course)

Economic Woes Facing the US – Economics Research Paper(200 Level Course)
The article talked in depth about economics woes facing the US right now. Bush’s plan seems to be a short term solution and they will further sink into a deficit. The Tax cuts instituted by president bush when he got into office in 2000 were mainly aimed at the few wealthy individuals who used some of the services that got lower taxes.

Not all people have estates and dividend receipts. The taxes for such services were lowered and they only benefited a few people.

Taxes on investments were lowered even though only a few rich individuals will benefit. The sudden increase in discretionary spending both on military and operations and new healthcare measures for the elderly have further sunk the budget into a deficits.

The fact that the economy was experiencing a slow down cutting taxes seemed the obvious solution. But in the long run, lower taxes will just increase the deficits since spending is projected to increase dramatically with the expectations that baby boomers will start retiring.

Overall the so-called initiatives instituted by President Bush are and will not help the country in the long run since government spending is rampant, the deficit has increased and government is still expanding instead of shrinking as promised.