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Why did the budget surpluses in 2000 and 2001 give way to a series of budget deficits beginning in 2008 Why did those deficits increase substantially beginning in 2008?
Wiki User
∙ 10y ago
Recent returns to deficits occurred because of the 2001 tax cut, the September 11, 2001 terrorist attacks, the subsequent "war on terror" at home and abroad, the economic downturn of 2001, and the fiscal policy response of extended unemployment benefits and significant reductions in tax rates. Further, in 2008 Congress acted rapidly to pass an economic stimulus package to overcome the great recession occuring from 2007-2009. providing a total of $152 billion including some tax breaks for businesses and and some as $600 dollar checks for taxpayers. The government hoped that this money would be spent and increase the economy;s GDP, but most taxpayers scared of the economy decided to save most of the money. This rose the deficit to -2.9 percent in 2008.
Wiki User
∙ 10y ago
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Who were the most fiscally irresponsible presidents?
I thought of one right away: George W. Bush!AnswerDon't forget George H.W. Bush, Ronald Reagan and Herbert Hoover. George W. Bush came into office following consecutive years of budget surpluses. However, he decided to spend away these surpluses, declining to veto many of the most gregarious spending bills, passing large tax cuts, and bringing the US into two costly wars. His adamant refusal to either retract the tax cuts or stop spending led the US into its greatest deficits in history.George H. W. Bush was not as fiscally irresponsible as his son, though deficits under Bush did increase to nearly $290 billion. Despite his plan to have "No new taxes," eventually the fiscal realities forced him to implement a tax increase, a key contributor to his 1992 defeat to Bill Clinton.
How did the Kennedy and Johnson administrations lead to economic problems in the US?
As the 1960's in the US unfolded, both President Kennedy and even more so President Johnson were willing to increase military expenditures overseas, and not only in Vietnam. Those expenses and both administration's desire to increase domestic programs without raising taxes paved the way for inflation later on. Year after year of government deficits lead to soaring prices and the lack of growth in US domestic industries. This in turn led to larger balance of payment deficits.
How do automatic stabilizers work?
Automatic stabilizers are built-in responses to changes in GDP (gross domestic product). They increase budget deficits during a recession, and increase budget surpluses during periods of inflation. Generally, they are inherent parts of a tax system, requiring no discretionary fiscal policy to activate. Take tax revenues, for example. As GDP rises, net taxes (tax revenues less transfers and subsidies) also rise. Government spending remains constant. Because the net taxes exceed government expenditure, a budget surplus is created. A surplus will have a contractionary effect on the overall economy, thereby relieving inflationary pressures. During a recession, net taxes will decrease. The resulting budget deficit will help expand GDP back to pre-recession levels. Transfer payments are also automatic stabilizers. Unemployment compensation, welfare, and agriculture subsidies decrease during inflation and increase during recession. This creates a budget surplus and deficit, respectively.
Sometimes at the beginning of an economic boom total employment increases sharply but the unemployment rate does not fall Why might this occur?
An economic booms leads to more people entering the labor market, which is why employment can increase significantly, even if the unemployment rate overall does not fall. Wages typically increase during a boom.
How might rapid inflation affect college enrollment?
Inflation is the decrease of the purchasing power of a currency.(Ex. Dollar, Yen, Franc, peso etc) This Increases the price of goods and purchases. If College Tuition rates Increase due to inflation it will be more expensive to attend college. This will affect enrollment substantially and may or may not reduce the enrollment rate.
How will adding the value 200 affect the mean and median of the data set 10 15 17 17 19 20?
The mean will increase very substantially, the median will remain unchanged.The mean will increase very substantially, the median will remain unchanged.The mean will increase very substantially, the median will remain unchanged.The mean will increase very substantially, the median will remain unchanged.
What does it mean to substantially increase?
To increase is to get larger, to have more of something. A substantial increase is an increase that is large enough to matter in some way.
What invention made the slave population increase substantially?
ball stain
Who were the most fiscally irresponsible presidents?
I thought of one right away: George W. Bush!AnswerDon't forget George H.W. Bush, Ronald Reagan and Herbert Hoover. George W. Bush came into office following consecutive years of budget surpluses. However, he decided to spend away these surpluses, declining to veto many of the most gregarious spending bills, passing large tax cuts, and bringing the US into two costly wars. His adamant refusal to either retract the tax cuts or stop spending led the US into its greatest deficits in history.George H. W. Bush was not as fiscally irresponsible as his son, though deficits under Bush did increase to nearly $290 billion. Despite his plan to have "No new taxes," eventually the fiscal realities forced him to implement a tax increase, a key contributor to his 1992 defeat to Bill Clinton.
When a low outlier is take out how will the mean median and mode change?
The mean will increase substantially. The median may increase slightly or substantially - depending on how many observations are in the central values of the distribution. The mode should not change at all.
do tattoos stretch as you grow?
If you increase your muscle mass substantially in the area of the tatto, then yes.
Should America substantially increase public health services for mental health care in the US?
Yes, increase in mental health care equals to increase in health for all people.
Why does breathing increase when beginning exercise?
Because of the increase of pulse in your heart.
Should the US federal government substantially increase its public health assistance to sub-saharan Africa?
Yes!
What is a Word beginning with D that means taking drugs to increase performance?
Doping is a word beginning with D meaning taking drugs to increase performance.
What word beginning with 'a' means 'to increase speed'?
Accelerate.
Did President Ronald Reagan balance the budget?
Yes. Jimmy Carter had deficits of $75 billion a year. Reagan had deficits of over $200 billion a year. He increased the national debt by 189%, the biggest increase of presidents in the last hundred years.
