Home Top News During the crisis, US presidents cut taxes and increased government spending

During the crisis, US presidents cut taxes and increased government spending

During the crisis, US presidents cut taxes and increased government spending

Selecting programs known to support the economy in American history (House of Representatives has another vote in a package worth $ 1.9 trillion – approximately 41 trillion crowns – to support the economy affected by the Govt-19 epidemic)

New Deal

– In 1929, large-scale sales of shares and a sharp fall in their prices caused the New York Stock Exchange to crash, triggering the deepest global economic crisis to date. Its effects are devastating. Between 1929 and 1933, unemployment in the United States rose from 1.6 to 12.8 million people, or 20 percent, with 16 million unemployed in the United States at the height of the crisis. Thousands of businesses went bankrupt.

– The US government initially took a neutral stance on the crisis and rejected any intervention. His approach changed somewhat in 1933 until President Franklin Roosevelt and his new contract plan, which, among other things, employed more than two million people in public projects. However, Roosevelt’s plan has been criticized by many economists as raising taxes, expanding government spending and regulation. According to critics, costly employment programs did not work well, and the economy and industry did not emerge from the crisis until the war turned to war.

Tax cuts for Presidents Gerald Ford and Ronald Reagan

– Republican Gerald Ford was in power from 1974 to 1977, when his government suffered the first oil shock, resulting in a global recession and rising inflation. Ford cut taxes, thus generating state budget revenue, but was able to revive the economy somewhat with its tax policy. However, the tax on this is also a large increase in US debt.

– Ronald Reagan, who went to the White House in 1981, immediately set a difficult course – reducing social spending and reducing income taxes and repealing many regulatory measures. But after the initial shock, “reaganomika“As the economy began to grow steadily, so did the cost of arms. By the end of Reagan’s second term, U.S. debt had exceeded 50 percent of GDP. Credit growth had also been affected by the peak of the Cold War and arms racing with the Soviet Union.

Another tax cut by George Bush Jr.

– George W. Bush Jr. took office in January 2001 and reached an agreement with Congress in May to cut $ 1.35 trillion in taxes. In 2003 he pushed for further tax cuts. Although tax breaks contributed to the economic recovery during Bush’s first term, they led to a sharp increase in the budget deficit, and the economy eventually grew slower than the 1949 average. Plans following 9/11 were overshadowed by attacks in New York and Washington and the wars in Afghanistan and Iraq.

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– At the end of Bush’s second term, the United States suffered the worst recession since World War II, triggered by the collapse of the U.S. mortgage market, which gradually escalated into a global crisis. Due to the crisis, the Bush administration approved a $ 700 billion economic aid package in the fall of 2008.

The ongoing crisis under Barack Obama

– Bush’s successor, Democrat Barack Obama, took the lead at the height of the crisis in his country in January 2009, expanding the economic support programs already accepted by Bush. Obama has pledged about $ 800 billion in support measures, including further tax cuts, infrastructure investment, higher unemployment benefits and other tools. Although the United States was reported to have technically emerged from the recession in the third quarter of 2009, it took several years for some industries and businesses to recover from the crisis.

Infectious Disease-19

– Last March, the US Congress approved President Donald Trump’s record package of $ 2.2 trillion (more than 50 trillion crowns) to support an epidemic-hit economy. This package includes direct payments for homes and businesses, extended unemployment benefits, hospitals and other healthcare facilities. The package also includes the controversial scheme of subsidized guaranteed loans for large industrialists.

– Another support package of $ 484 billion (12.3 trillion crowns) was approved by Congress in April. In December, Congress voted for another package worth nearly $ 900 billion (approximately $ 19.3 trillion).

– Trump’s successor, President Joe Biden, identified the epidemic as one of his priorities shortly after taking office, and this weekend the Senate approved a revised version of another $ 1.9 trillion ($ 41 trillion) package to support the epidemic-hit U.S. economy. The House of Representatives will vote on the package on Wednesday. Congressmen are expected to adopt the Senate version, which will soon be signed by Joe Biden.

Source: CDK, Reuters

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