Can The Bush Tax Cut Work?
After weeks of increasingly dismal reports from the financial sector, many regular Americans are beginning to worry that the US may be close to or already in recession. While government intervention in the economy is relatively uncommon in US history, since its establishment in the 1930’s, the Federal Reserve has been able to manipulate interest rates, giving them the power to make all real estate loans more or less expensive by some degree, which comes with a hefty responsibility: controlling inflation. While the Fed has cut their rate three times in as many months last quarter, the economy also began to tailspin simultaneously. This puts them up between a rock and a hard place, because if interest rates are too low, inflation can begin to threaten, especially as the dollar continues to depress against other currencies. Fortunately, there is one part of the economy that the government is able to adjust in order to make ordinary American’s pockets a bit less bare: taxes. President Bush
