Romer, C. (1999, Spring). Changes in business cycles: Evidence and explanations. Journal of Economic Perspectives, 23-49.
The level of the national debt at the end of Fiscal Year 2000 was $5.7 trillion. As of 23 September 2004, the level of the national debt was $7.4 trillion. Thus, the level of the national debt increased $1.7 trillion over the four federal fiscal years. This increase compares to the $1.6 trillion increase in the level of the national debt over the prior eight years (Bureau of the Public Debt, United States Treasury, 2004).
The background for the actual and proposed initial tax reductions since 2001 at the federal level of government was the longest and strongest economic expansion in the United States over the past 50 years that occurred during the final five years of the Clinton Administration. Modest tax reductions occurred during this period; however, fiscally more important was the enactment and adherence to a meaningful deficit reduction law that, by the end of the period, had effectively removed the federal government from competing for funds in the credit markets (Kosterlitz, 2000).
The Federal Reserve Discount Rate is the interest rate that the Federal Reserve System charges on a loan it makes to a member bank. Such loans, when allowed, enable a bank to meet its reserve requirements without reducing its loans (Federal Reserve Bank of San Francisco, 2004).
measurement in relation to prices in a base period.
Recessions followed the economic booms of the 1960s and 1980s. Slower economic growth followed the economic boom of the late-1990s. There are major differences between a recession and slower economic growth. The tax reductions pushed by the Bush Administration and the congressional majority since 2001 were more appropriate for recessions than for slower economic growth.
Caputo, R. K. (2004, September). Presidents, profits, productivity, & poverty: A great divide between the pre- & post-Reagan U.S. economy? Journal