In February 2009, US President Barack Obama authorized a $787 billion economic stimulus package composed of spending increases and tax cuts. The US national debt rose by $6 trillion from 2008 to 2012, while unemployment peaked at 10 percent in 2009 and then declined.
When the year 2007 approached the economy very close entering the recession because consumer spending was down while unemployment was dramatically high whereas the market was unstable the economy didn’t officially enter the recession until September 2008 when Lehman Brothers investment firm collapsed. The Lehman Brothers firm was a major Wall street investment firm that had a high contribution to the banking crisis in the country. During the crisis, the Federal Reserve also played a role because of their association in monetary policies that increased homeownership and the free market capitalism. This created a housing bubble and when this shattered it left homeowners in debit than what their house was worth.The Bush administration quickly responded before pandemonium happened by approving $168 billion economic stimulus package. In the year 2008 The emergency Economic Stabilization Act funded the Troubled Assets Relief Program (TARP) which provided, loans to troubled banks.
The great recession took place in the year 2007 through 2009 this period was considered the worst global economic disaster since the Great Depression (1980). After the recession, it lead to questioning whether the Federal government should be allowed to regulate the private industry. During the recession under the presidency of George W. Bush the administration applied a series of economic r that essentially raised the federal budget which resulted in the federal debt to double its amount. The areas that benefited the most from the federal spending were in Medicare and defense. During the Bush administration, the largest tax cut in history was administered known as “Bush Tax Cuts” under this tax cut it lowered marginal tax rates while other were more benefitable such as child tax credit. Many argued the tax cut lack inequality because it strongly supported the upper class. Some economist state other factors such as technological advances, free trade policies, and the declining power of labor unions also played a role in income inequality.