American Economy after September 11 th " Every president is dealt a hand of cards,' said John Shove n, a Stanford University economist and senior fellow at the conservative Hoover Institution. 'Bush inherited a pretty tough hand.' When President Bush took the office in the year 2000, things were moving smoothly on the surface. Undercover there was havoc. Tragedy of September 11 th shook the world but it shook the US most.
Technically speaking, one would say of course it rocked the US, after all it did happen in US. But if truth be told things went downhill instantly. US economy was affected the most. With the twin towers erased from the surface of the country and economic records in the form of ashes- only the wisest of the wise could have pulled the country back from meeting its fate. But with the blessings of the current president, the country met its downfall soon. Facts and figures are clearly given in David Lazarus's report which appeared in the San Francisco Chronicle last year on the 11 th of August.
He very plainly states that "When Bush came to power; the U. S. economy was at the tail end of a dot-com-fueled bubble that couldn't have been sustained under any circumstances. A recession, most economists believe, was all but inevitable." Jared Bernstein, senior economist at the liberal Economic Policy Institute in Washington states "The president's key economic error was to attempt to stimulate the economy by skewing the benefits of three tax cuts toward wealthy Americans." According to Citizens for Tax Justice, a liberal-leaning Washington think tank, nearly forty percent of the benefits from Bush's tax cuts will go to the richest 1 percent of Americans, those earning on average $1 million a year.
By contrast, only about seventeen percent of the benefits will go to the sixty percent of the population earning $45, 000 or less. 'The tax cuts made no sense as a stimulus measure,' said Bob McIntyre, director of Citizens for Tax Justice. 'If you want to stimulate the economy, you have to give money to people who don't already have it.' Bernstein said a crucial problem for many Americans today is that wages are significantly lagging behind inflation. With prices up 3%, the middle class's income has become far worse than how it was four years back. People are now clearly stating that things have become very tough financially.
He has made it note worthy that it would take extraordinary growth -- about 400, 000 new jobs a month (august 2004 and November 2004) -- for Bush to avoid the dubious distinction of being the first president since Herbert Hoover to see a net decline in jobs during a term of office. Because it is observed that US is more than a million jobs below than it was at the employment peak in March 2001. Every now and then newspapers and magazines print the percent of unemployment in the states of US. Only if the president had foreseen the outcome of his doings, he may not have plunged the state into a giant turmoil. By increasing the security in the airports he made the air travel difficult; Tourism lessened, Airlines went bankrupt and then shut down, travel agencies closed down too.
It was basically a chain reaction, downfall of one company led to the downfall of another. The President's economic policies didn't help him one bit; in fact till to this date he's trying his level best to defend them. When the dismal report on job creation was released in the beginning of August - a negligible amount of jobs were created (32, 000) when 240, 000 were expected. Even though the US President said that the economic growth was strong the report proved otherwise.
It is seen on a number of occasions that the he usually says one thing when the obvious evidence is yelling another story. When Bush took office, bankruptcy filings during the previous year totaled almost 1. 3 million, down 5 percent from a year before. By Dec. 31, 2003, bankruptcies had hit a record of nearly 1.
7 million, up 5. 2 percent from 2002, according to the American Bankruptcy Institute - and then Bush says economic growth is strong. I ask him, from which angle does it look strong? This angle or the angle which I'm presenting next? Because at the time he took hold of the office, the unemployment rate was 4. 2 percent. It's now 5. 5 percent, according to the Labor Department.
I agree that the President's position was never strong economy wise but then he should have taken advice from economists such as Mr. Shaukat Aziz, Pakistan's Prime Minister. He was declared the "Finance Minister of the year by Euromoney and Banker's Magazine" in the year 2001. He could have recovered the losses, if not in 5 years then at least the country would have seen the rise by now.
If a man can rescue the economy of Pakistan from the brink of bankruptcy and of not being implicated in political games, the appeal doubles. Even though US economy faced crises back to back, it has retained its 52 states. There are a number of companies, some based online some offline and they have a bright future. There's a lot that this country can do and there is a lot that is already happening. But what America cannot handle is forgetting the past and becoming clumsy.
If this happens, then its future will perpetually remain bleak. Source of Info: web.