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The time is 22:59:55 and the date is 15 July 2008

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Domestic policy

Economic policy

Facing opposition in the Congress, Bush held town hall-style public meetings across the U.S. in 2001 to increase public support for his plan for a US$1.35 trillion tax cut program — one of the largest tax cuts in U.S. history. Bush and his economic advisers argued that unspent government funds should be returned to taxpayers. With reports of the threat of recession from Federal Reserve Chairman Alan Greenspan, Bush argued that such a tax cut would stimulate the economy and create jobs. Others, including the Treasury Secretary at the time Paul O'Neill, were opposed to some of the tax cuts on the basis that they would contribute to budget deficits and undermine Social Security.

Under the Bush Administration, real GDP has grown at an average annual rate of 2.5 percent, considerably below the average for business cycles from 1949 to 2000. The Dow Jones Industrial Average has grown by about 30 percent since January 2001. Unemployment originally rose from 4.2 percent in January 2001 to 6.3 percent in June 2003, but subsequently dropped to 4.5 percent in July 2007. Inflation-adjusted median household income has been flat while the nation's poverty rate has increased. By August 2007, the national debt had risen to US$8.98 trillion dollars, an increase of over 70% from the start of the year 2000 when the debt was 5.6 trillion dollars.

A survey done by the American Research Group showed that as of April 2008, 22% of Americans approved of President Bush's effect on the economy. The perception of President Bush's effect on the economy, however, is significantly affected by partisanship with 67% of Republicans and 1% of Democrats approving of his performance.

Another significant part of the Bush economic plan was the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Education and health

Since entering office, President Bush has undertaken a number of educational priorities. He increased funding for the National Science Foundation and National Institutes of Health in his first years of office, and created education programs to strengthen the grounding in science and mathematics for American high school students. Funding for the NIH was cut in 2006, the first such cut in 36 years, due to rising inflation.

Bush signs the No Child Left Behind Act into law, January 2002

One of the administration's early major initiatives was the "No Child Left Behind Act", which aimed to measure and close the gap between rich and poor student performance, provide options to parents with students in low-performing schools, and target more federal funding to low-income schools. This landmark education initiative was signed into law by President Bush in early 2002. Many contend that the initiative has been successful, as cited by the fact that students in the U.S. have performed significantly better on state reading and math tests since Bush signed "No Child Left Behind" into law. Critics argue that it is underfunded and that NCLBA's focus on "high stakes testing" and quantitative outcomes is counterproductive.

In 2007, Bush opposed and vetoed State Children's Health Insurance Program (SCHIP) legislation which was added by the Democrats onto a war funding bill and passed by Congress. The SCHIP legislation would have significantly expanded federally-funded health care benefits and plans to children of some low-income families from about 6 million to 10 million children. It was to be funded by an increase in the cigarette tax. Bush viewed the legislation as a move toward the liberal platform of socialized health care, and claimed that the program could benefit families making as much as US$83,000 per year who would not have otherwise needed the help.

Social services and Social Security

Bush promoted increased deregulation and investment options in social services, leading Republican efforts to pass the Medicare Act of 2003, which added prescription drug coverage to Medicare and created Health Savings Accounts, which would permit people to set aside a portion of their Medicare tax to build a "nest egg". The retired persons lobby group AARP worked with the Bush Administration on the program and gave their endorsement. Bush said the law, estimated to cost US$400 billion over the first 10 years, would give the elderly "better choices and more control over their health care".

President Bush speaks at the United States Coast Guard Academy commencement, May 2007

Bush began his second term by outlining a major initiative to reform Social Security, which was facing record deficit projections beginning in 2005. Bush made it the centerpiece of his agenda despite contrary beliefs in the media and in the U.S. Congress, which saw the program as the "third rail of politics," with the American public being suspicious of any attempt to change it. It was also widely believed to be the province of the Democratic Party, with Republicans in the past having been accused of efforts to dismantle or privatize it. In his 2005 State of the Union Address, Bush discussed the allegedly impending bankruptcy of the program and attacked political inertia against reform. He proposed options to permit Americans to divert a portion of their Social Security tax (FICA) into secured investments, creating a "nest egg" that he claimed would enjoy steady growth. Despite emphasizing safeguards and remaining open to other plans, Bush's proposal was criticized for its high cost, and Democrats attacked it as an effort to partially privatize the system, and for leaving Americans open to the whims of the market. Bush embarked on a 60-day national tour, campaigning vigorously for his initiative in media events ("Conversations on Social Security") in a largely unsuccessful attempt to gain support from the general public. Despite energetic campaign by Bush to promote his Social Security reform plan, by May 2005 the public support for the Bush proposal declined substantially and the House GOP leadership decided not to put Social Security reform on the priority list for the remainder of their 2005 legislative agenda. The proposal's legislative prospects were further diminished by the political fallout from the Hurricane Katrina in the fall of 2005. In the run-up to the 2006 congressional elections, the Republican leadership in Congress put the hot-button issue of the Social Security reform on the back burner. No substantive legislative action was taken on this issue in 2006. After the Democrats gained control of both houses of the Congress as a result of the 2006 mid-term elections, the prospects of any further congressional action on the Bush proposal appeared to be dead for the remainder of his term in office.

Environmental policy

Upon arriving in office in 2001, Bush did not support the Kyoto Protocol, an amendment to the United Nations Convention on Climate Change which seeks to impose mandatory targets for reducing greenhouse gas emissions. Bush asserted he would not support it because the treaty exempted 80 percent of the world's population would have cost tens of billions of dollars per year, and was based on his personal opinion regarding the uncertainty of the science of climate change. He also cited that the Senate had voted 95–0 in 1997 on a resolution expressing its disapproval of the protocol.

In 2002, Bush announced the Clear Skies Initiative, aimed at amending the Clean Air Act to reduce air pollution through the use of emissions trading programs. It was argued, however, that this legislation would have weakened the original legislation by allowing higher levels of pollutants than were permitted at that time. The initiative was introduced to Congress, but failed to make it out of committee.

President George W. Bush with Vice President Dick Cheney addressing the media at the State Department, August 14, 2006

President Bush believes that global warming is real and has said that he has consistently noted that global warming is a serious problem, but he asserted there is a "debate over whether it's manmade or naturally caused". In his 2007 State of the Union Address, Bush renewed his pledge to work toward diminished reliance on foreign oil by reducing fossil fuel consumption and increasing alternative fuel production. During his 2008 State of the Union Address, he announced that the U.S. would commit US$2 billion over the next three years towards a new international fund to promote clean energy technologies and fight climate change, saying, "along with contributions from other countries, this fund will increase and accelerate the deployment of all forms of cleaner, more efficient technologies in developing nations like India and China, and help leverage substantial private-sector capital by making clean energy projects more financially attractive." He has also announced plans to reaffirm the United States' commitment to work with major economies and through the United Nations to complete an international agreement  

 

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