Eight years wasted, the economic failures Essay

Custom Student Mr. Teacher ENG 1001-04 5 June 2017

Eight years wasted, the economic failures

Inflation Another aspect of the Bush administration’s failure is an uncontrolled increase in inflation. At the beginning of the Bush administration in 2001, there was a notable decline in the prices of all items and services as compared to the preceding year. Perhaps this was because of the effort by Bush to fulfill campaign promises. The truth of the matter is that after 2001, the prices of all items went up, declining only slightly in 2003. Since then, there was a notable fluctuation in the prices but overall, the prices remained at an all time high.

In fact, the 4.1 per cent change in price of items (Table 2) was the highest margin to have been recorded since the 6. 1 per cent rate recorded in 1990 at the height of the Gulf War (Irwin and Dan. ). Year All items Commodities Services Medical care Energy Dec. to Dec. Year to year Total Food Total Medical care Dec. to Dec. Year to year Dec. to Dec. Year to year Dec. to Dec. Year to year Dec. to Dec. Year to year Dec. to Dec. Year to year Dec. to Dec. Year to year 2000 3. 4 3. 4 2. 7 3. 3 2. 8 2. 3 3. 9 3. 4 4. 6 4. 3 4. 2 4. 1 14. 2 16. 9 2001 1. 6 2. 8 -1. 4 1. 0 2. 8 3. 2 3. 7 4. 1 4. 8 4. 8 4.

7 4. 6 -13. 0 3. 8 2002 2. 4 1. 6 1. 2 -. 7 1. 5 1. 8 3. 2 3. 1 5. 6 5. 1 5. 0 4. 7 10. 7 -5. 9 2003 1. 9 2. 3 . 5 1. 0 3. 6 2. 2 2. 8 3. 2 4. 2 4. 5 3. 7 4. 0 6. 9 12. 2 2004 3. 3 2. 7 3. 6 2. 3 2. 7 3. 4 3. 1 2. 9 4. 9 5. 0 4. 2 4. 4 16. 6 10. 9 2005 3. 4 3. 4 2. 7 3. 6 2. 3 2. 4 3. 8 3. 3 4. 5 4. 8 4. 3 4. 2 17. 1 17. 0 2006 2. 5 3. 2 1. 3 2. 4 2. 1 2. 4 3. 4 3. 8 4. 1 4. 1 3. 6 4. 0 2. 9 11. 2 2007 4. 1 2. 8 5. 2 2. 1 4. 9 4. 0 3. 3 3. 3 5. 9 5. 3 5. 2 4. 4 17. 4 5. 5 Table 2: Changes in consumer price indexes for commodities and services between and 2007 Source: Modified from GPO Access

The high prices of commodities and services noticed during the Bush Administration not only affected the financial positions of many families but also influenced the people’s access to essential services such as healthcare (Atkinson and Hutto). According to Hanke, the 2003 United States census showed that any family of three lived on a mean of $51 a day. This figure was arrived at using an assumption that childcare and healthcare services were fully financed by the government (United States Department of Labor). Nevertheless, this was not the case for most families, as they had to rely on their own means to support themselves.

In the context of high cost of commodities and services and with particular reference to childcare and healthcare services, many families had to spend as much as over 20 per cent of their incomes in pursuit of these services (Robinson). According the New York Times, the Bush administration cut funding programs for many essential programs such as childcare, which were particularly appropriate for single parent households (The High Cost of Health Care). This move was done as the administration aimed at improving and expanding other unpopular programs such as promotion of marriage (United States Bureau of Statistics).

However, the downside of this point is that as focus was shifted to newer programs, the already existing programs suffered an even heavier blow in terms of the exorbitant costs that had to be incurred (The High Cost of Health Care). According to Shi and Gregory, the highest number of individual without healthcare services was recorded in 2003 (60). This is because most attention was diverted to acquisition of other essential commodities and services such as food and housing (The High Cost of Health Care).

Yet president Bush still insisted on funding the war to oust President Saddam Hussein from power in Iraq. This action can be considered as a case of misplaced priority because whereas President Bush was busy pursuing the United States foreign policy, local affairs (which perhaps needed more attention) were thrown into disarray. Money Supply During the Bush Administration, the supply of money increased, but with some fluctuations. For instance, the total value of the United States currency, traveler’s checks, demand deposits and other checkable deposits rose from $1087.

4 billion to a high of $1473. 1 billion in October 2008 (GPO Access). The high supply of money does not imply that the United States economy improved in the period of eight years. Rather, it is an indication the value of the United States dollar could have depreciated (Crutsinger and Aversa). Thus, the large sums of money released to fund the war in Iraq in 2003 did not add any impetus to the United States economy (Crutsinger and Aversa). Instead, the economy became vulnerable with reference to a weak dollar against other world currencies.

In spite of the increase in the sum of currency, there was an increase in debt of domestic nonfinancial sectors from $18,183. 6 billion in 2000 to $32,436. 5 billion in 2006 . This means that nonfinancial institutions increasingly had to borrow during the era of George W. Bush. It therefore no wonder that the United States was crippled by a great financial crisis only comparable to the Great Depression towards the end of Bush’s reign, the overriding factor being that the United States government had spent so much money on defense and war in Iraq and Afghanistan at the expense of internal development.

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