Policy Errors and Solutions

Policy Errors and Solutions

Policy Errors and Solutions

Policy Errors and Solutions:By the end of President Bush tenure, economy faced a difficult fiscal situation. The economy was at recession and the condition got worse government sponsored enterprise collapsed alongside AIG AND Lehman Brothers (Jones, 2010).

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If the government had taken a different policy path, the situation would have been different. Economist suggests that the economic meltdown was unavoidable but if the deficit was lesser, the situation could have been better (Friedman & Ruffing, 2013). The government should have reduced its expenditure on the wars. Reduction in taxes is expected to improve and stimulate the economy, but the increase in expenditure for wars led to a huge deficit.

Cruz, L. D. (2012). ”Unmitigated Disaster”: Vol. # 1. New Jersey: Xlibris Corporation.

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