In the beginning of his term, George Bush was faced with national debt left by the former president, Ronald Reagan. Primary economic policy of George Bush was to curb the deficit which was essential to secure his position as world leader.
His immediate task was to convince both the political parties to come into a consensus on reduction of deficit. While the Republicans believed that curtailing of government spending was best way of reducing deficit, the Democrats wanted to adopt a strict revenue policy for the same. In lieu of democratic majority, George Bush enforced a stronger tax policy. His policy alienated him from the republican congressmen and also reduced his popularity among masses, which bore the burden.
At the end of the 101st Congress, congressional members reached a decision of adopting a marginal tax increase rate. This would also terminate exemptions for taxpayers belonging to the higher income group.
In following financial year, the United States of America was faced with mild recession that continued for a period of six months. Several government programs on welfare were initiated and successful. The president agreed to provide more benefits to unemployed workers, the margin of which continued to increase in subsequent phase. Reorganization of several industries led to the lay off of several employees who were now unemployed.
While serving his second year in the office of the president, George Bush hardly engaged in furtherance of his economic policies. The year 1992 witnessed low inflationary rates and interest rates although unemployment problem had aggravated and reached 7.8%, the highest recorded since 1984. According to reports of Census Bureau, 14.2% of citizens of America were under the poverty line.
A greater sense of optimism prevails in Indonesia about the economy in 2015 than a year ago, even though the reality is now more challenging. Growth is slowing, business costs are on the rise, and key economic vulnerabilities persist. In simple terms, the new government of President Joko Widodo (Jokowi) has been dealt a difficult hand of cards. At the same time, a revival of investor confidence is in prospect if the government can pursue a constructive reform path and there are positive signals in this regard.
Nouriel Roubini, a.k.a. “Doctor Doom”, is chairman of Roubini Global Economics and professor of economics at New York University’s Stern School of Business. Roubini has been consistently cited as one of the world’s top global thinkers. This year, he was voted as the most influential economist in the world by Forbes magazine.
Eric J. Gleacher Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago. IMF’s Chief Economist from September 2003 to January 2007. Inaugural recipient of the Fischer Black Prize.
CEO and co-CIO of PIMCO. Served as President and CEO of the Harvard Management Company for 2 years, while also working at the IMF for 15 years. In 2008, his book "When Markets Collide", won the Financial Times award for Business Book of The Year in addition to being named as the one of the best business books of all time by The Independent.
James W. Harpel Professor of Capital Formation and Growth at the John F. Kennedy School of Government in Harvard University. Director of Program in International Finance and Macroeconomics at the National Bureau of Economic Research.