George W. Bush's domestic and foreign policy agenda

¶ … aid President George W. Bush in policy formulation. It is an all-inclusive paper dealing with a wide range of issues such as the American economy in general- discussing issues such as budget deficits, tax cuts, medical assistance and benefits for retired people, the weakening American dollar, allocations for the military, intelligence and homeland security, job growth and the regime and policies of free trade. With regards to security, it features the recent American initiate on the war on terrorism. The issue of Weapons of Mass Destruction (WMD) and nuclear proliferation are discussed quite at length.

Another aspect listed in the paper is the 'future', as it was viewed from the era of the Vietnam War. The relevance of the cold war is also outlined as a great American victory. Compelling issues such as the role of oil, OPEC, the Middle East and the socio-political and economic situation after the incidents of September 11 are addressed. To top it off, the role of the United States government is outlined and made easy to understand. The governmental role is three pronged involving its role as a guardian whose primary responsibility involves the protection and safeguard of the American people, its economic role as a custodian of the economic agenda and implementation of the same and upholder of the principle of freedom in all dimensions be it economic, social or both.

The economy of the United States of America has taken a beating in the recent past. Several factors such as tax cuts, outsourcing, job creation and so on are concerning issues. However, there is still the light at the end of the tunnel. The ambitious idea of the government to spend 1.6 trillion dollars over the next seven or so years has met fierce criticism. In order to put the tax cuts in place and running the government would be set back by about 4-6 billion dollars. It is so because, reorganizing the tax code will elevate a good number of middle class tax payers into a higher bracket. In order to push them back to their bracket and implement other modal codes the United States treasury needs to allocate about 2-2.2 trillion dollars. (Bush's tax cut) & (Economy: Job Creation)

The appreciable factor in the entire issue is the surplus which is estimated at 5.6 trillion dollars spread over the next ten years. There is also a projection of a 500 billion dollar from Medicare surpluses. The democrats on the other hand intend to spend the entire Social security and Medicare surpluses towards paying off debt. This however cannot be a favourable idea since it leaves the government with no table funds. A better and agreeable solution would rather be paying up a whopping 80% of the debt, subtracting 2 trillion dollars from Social security surpluses and using the remaining 600 billion dollars as an investment into the promising avenues of the stock market. Thereafter, a reserve account can be created to haul in the funds that have come by way of medical surpluses which amount to 500 billion dollars added up with an extra 340 billion. (Bush's tax cut) & (Economy: Job Creation) proposed increased spending calls for various allocations that come in form of educations, military salaries, prescription drugs, 4.9 billion dollars for sprucing up national parks, 700 million dollars for mentors of those children whose parents face prison terms and 238 million dollars allocated for spending on Medicare in the recent future. The tax cuts on dividends and long-term capital gains is highly beneficial since it would end the double-taxation of corporate profits that have been a grave cause for concern. Eventually, dividends would be tax free but with a fine-print. A company that pays no amount as taxes shall not be able to pay tax free dividends to its shareholders. To put it more lucid and comprehendible, dividends will be tax exempt only if they have not exceeded a company's taxable income minus dividends paid. This is aimed at cutting short massive tax avoidance adventures by heavy weight corporate. This apart there are several issues of concern that need to be addressed by the administration. Despite a huge uptrend in the stock market and the housing industry, latest figures suggest that there has been a widening wealth gap. Another major economic indicator, the job situation also seems to be on a downslide.

Bush's tax cut) & (Economy: Job Creation)

During the period 1992-2001, the net wealth of low-income U.S. households increased by a mere seven percent, a figure that rose from 6,261 to 6,720 dollars. In comparison however, the net wealth of all U.S. households increased by 42%, a figurative increase from 60,695 to 86,100 dollars. In the year 2001 however, the net wealth of the poor household was 6,720 dollars compared to 86,100 dollars for the moderate U.S. household which indeed was a sizeable wealth gap of thirteen to one. The unemployment rate on the other hand too has zoomed up from 4.2% in 2001 to 5.6%. It is a clear 33% increase and stands above the five percent rate. This is a serious issue that needs to be addressed. A figure estimates the number of jobless Americans at about eight million. The tax cut plans are a welcome relief and a matter to cheer about in this economic situation. Every American who is a tax payer shall be eligible to relief. The average relief brought about by the plan for a family of four with two children will be about 1600 dollars. (President George W. Bush - remarks on tax cuts')

The amount equates to the average mortgage amount for a month or an entire year's tuition fees at a community college or the average cost of gasoline for two cars in a whole year or cost of power for an average Californian family in one whole year. It is a meritorious plan that is aimed at addressing the struggles of American families. Moreover it is a fair course of action as it does not discriminate among anyone whosoever. Any person who is a tax payer can enjoy the benefit of the tax cut program. Americans are segregated into five income tax categories. They are; the 15%, 28%, 31%, 36% and nearly 40%. The tax cut plan that has been featured aims at reducing the number of groups into four, the new groups being 10%, 15%, 25% and 33%. (President George W. Bush - remarks on tax cuts')

Another key area to be put under the scanner is the federal deficit. The levels touched an all time high in the year 2003 and are expected to climb even higher this year. During the fiscal year 2003, the United States recorded an annual budget deficit of 374 billion dollars. The figures in the immediate preceding year were marked at 158 billion dollars. The annual budget deficit figure projected for this year is pegged at 477 billion dollars as estimated by the Congressional Budget Office. However, the administration in its own review has termed the figure to be a colossal 544 billion dollars. An independent working body, the Citizens for Tax Justice, recently conducted a full scale study of the administration's tax cut regime and made a few notable observations; in 2004, 47% of taxpayers will receive 100 dollars or less. 63.4 million Taxpayers will receive an average of 19 dollars, In the year 2005, 74% of taxpayers will receive 100 dollars or less. 97.9 million Taxpayers will receive an average of 5 dollars, in 2006, 88% will receive 100 dollars or less. 118 million taxpayers will receive an average of 4 dollars; and finally, the wealthiest Americans across the country will receive a gross 96, 634 dollars in tax cuts over the next four years. (Jobs and the Economy)

Given hereunder are three tables that outline the Bush administration's budget for the period 2001-2010. It indicates a surplus of 265 billion dollars.

Table # 1; Budget 2001-2010

SURPLUS AMOUNT

Total Surplus

Social Security Lock Box

On-Budget Surplus

TAX CUTS AND SPENDING

Tax Plan

Medicare Rx & Reform

Health

Defense

Education

Compassion/Charity

Agriculture

Housing/IDAs

Environment

Crime & Other Domestic Issues

Savings from Government Reform

Interest Cost

Total Tax Cuts & Spending

Source: Press Release, "Budget Numbers"

Table # 2; Surpluses

Budget Surplus

Administration's Proposals

Estimate for 2002-2006

586 billion

Estimate for 2001-2010

No estimate made

Economic assumptions

Uses lower estimates of Congressional spending & 2.7% annual growth

Source: NY Times

Table # 3; How Surpluses would be used

USAGE OF SURPLUS

For fiscal years

Tax cuts

483 billion; total $1.3 trillion by 2010

Some major spending proposals

46 billion for health care

13 billion for education

25 billion for defense

Source: NY Times, (George W. Bush on Budget & Economy)

The American economy has for a while been reeling under the pressures of a weak dollar. This has had quite a serious repercussion on the overall economic scenario. A weak dollar cannot buy much. This means that foreign goods would turn out to be more expensive for the American people. A weak dollar policy is inflationary; this would put upward pressure on the interest rates as bond investors would demand an extra return for a future purchasing power that has been lost. The downfall of the dollar would also deter foreign investors as there is an inevitable risk of holding depreciating dollars. This would prompt them to demand a higher rate of return which will in turn create an upward pressure on interest rates. The upward pressure on the interest rates has a direct impact on the stock market. Stocks with rich valuations based on future growth would be hard hit. Higher interest rates would also be unkind on the entire housing industry thus causing the figures of growth to reverse and plummet eventually. While a smooth and slow descent of the dollar could work out some advantages such as balancing the entire world economy, a steep and unpredicted slide in the greenback could only spell disaster in all economic levels. This has to be countered with several measures such as building the investor confidence, regulation of interest rates and so on. The dollar is worst affected when leaders of the G7 nations and governors of central banks across the region, in unison, sign ideal market determined currency rates. This would impose a tremendous pressure on the dollar thus prompting it to take a dive.(Weak Dollar Medicine: Motley Fool Take)

There seems to be no concrete proof that holding foreign stocks will yield a bankable currency benefit. During the period 1997-2002, when the dollar was on its gain run, American investors across the world wide market were engaged in a losing game. There is widespread belief that the economic policies of the administration are fundamentally inconsistent thus triggering a fall in the dollar. In truth, there is a lower level of confidence in the dollar and it is set to continue southwards and this has not a lot to do with the administration's economic policy. The general idea is that, once a currency tends to go one way or the other, it will continue to do so and call for a policy response. With the presidential elections around the corner, it would take a great deal of drive and effort to make the buck do a turn around. (Playing the Weak Dollar)

The Chairman of the Federal Reserve, Dr. Alan Greenspan told the Congress recently that a dramatic slowdown in productivity would trigger a stronger overall job growth this year. This is the steadfast belief of the administration too. Productivity is nothing but a measure of how much workers produce per hour. With business having invested huge sums in cutting edge technology and imposing an altogether new work culture that involves better and effective management, productivity has grown at a rapid pace. In the long run, productivity leads to job growths and higher standards of living. On the other hand, in the short run, it has aided in making the current labor market reach its most feeble since the great depression. The 12-month percentage change in the nation's payrolls has been lifelessly flat for 31 long months. This is the longest such stretch ever since the Labor department began monitoring and tracking data in the year 1939. The administration however has an answer. In its semi-annual economic forecast, a great deal of change is predicted during the year. Growth of productivity is expected to slow down from last years annualized rate of 4.2% to a marginal rate of 1.5% this year. Given below is a graph detailing payroll growth for the period 2003 and 2004.

Graph #1; Monthly change in the U.S., non-farm payrolls. (In thousands)

Future World Oil Production)

Post 9/11, there is an urgent need for an improved and alert security system in place. The United States of America is fighting a war on all fronts that aims at abolishing the legions of terror from across the globe. The enemy in question is not a single, political, regime or person. It is the concept of terror in all forms and origins. The struggle against global terrorism calls for effective mobilization of resources that aid in the accomplishment of objectives. Fighting terror has been a war, one that has never been seen before. It is the coordinated effort of the American administration and a coalition that rejects the use and perpetration of terror.. (The National Security Strategy of the United States)

The Administration's priority lies in identifying terrorist infrastructure and dismantling it to the last sleeper cell thus make the world a better and safer place to liver in. with an aggressive and one-worded policy that spells doom for terrorist outfits and those regimes who harbor them, the war on terror is one that will be won by the administration and its allies although it is being fought on a long footing and would take quite a long time to deliver the much expected results that the international community has been waiting for. The administration shall be a world leader in the pursuit and sustenance of peace and freedom within and across the United States of America. This is a keen reiteration to the commitment of the administration to safe guard and upholds the true values of democracy, freedom and a world free from terrorism in all forms. (The National Security Strategy of the United States)

In the many years to come and pass, the role of the Government of the United States is going to be shaped into a much broader and extensive forum. Resource: Democracy in America) & (Citizens for a sound economy)

While running the country in an accepted manner on behalf of the American citizens, the government should also don the role of a custodian who safeguards public interests and facilities so as to ensure a better and safer society. The government needs to, at all times, operate within the framework of the constitution and the executive substructure thus being a guardian of the people and the places it is due in protecting. The role of the government needs to be multilateral in identifying, addressing and providing solutions for a whole array of issues that form part of its primary business. Welfare of the people and the country shall top the agenda of the federal government. It shall also be responsible to maintain a legal framework of operations that ensure the promotion and upholding of the law of the land. It shall in its quest for justice guarantee that nothing shall supersede the law. Resource: Democracy in America) & (Citizens for a sound economy)

In the wake of new threats such as terrorism, it shall assume the role of a liberating force which shall deal with outlawed organizations and regimes in a tough manner and bring them to justice. At the same time, back home and across borders, it shall encourage the practice of democracy and freedom so that the long standing American tradition is maintained. It shall ensure that all its departments and agencies shall work in unison and in conjunction with one another so as to achieve the required objectives. Issues related to the fundamental rights of the citizens shall be thoroughly and timely analyzed and implemented for democracy needs to be practiced in all levels of functioning. Furthermore, it shall ensure that justice is dispensed with ease and on a timely manner. (Resource: Democracy in America) & (Citizens for a sound economy)

Conclusion:

The United States of America is a world leader. It has clearly emerged winner on a turf, negotiating which has not been an easy task. Over the years this democracy has seen forty three presidents, a good number of whom have been leaders of class often steering the great nation into the path of development and prosperity. Formulation of plans and policies to be implemented in this mammoth economy needs a great amount of research and gathering tones of facts and figures which in itself is a daunting task. The President is the top most functionaries in the United States. He has to his aid a retinue of people and agencies that ease his marathon task of governing the nation. Aspects such as national policy, international relations, trade and commerce between nations, national security and so on have gained a great deal of prominence and need the executive attention of the Presidential Office and the Executive Branch. The entourages of professionals that back up the President are highly skilled and are the think tank of the entire cabinet. They advice the President on a range of issues such as defense, social security, national security, trade reforms, bilateral relations, treaties and so on.

This paper makes an elaborate effort to do just that. It is a guide that allows the President to gain an insight into a complex mechanism known as the "United States of America." It guides him through various policy reforms and issues that form a key aspect of American governance. With the latest updates, facts and figures it is indeed a very comprehensive and detailed picture of the American economy, its security systems in place and a sum total of issues that need to be pondered over from time to time for a better nation state. There is a great deal of professionalism that needs to be stressed upon while advising the President on all matters. It requires expert opinion backed up by facts and figures that have relevance in the current situation. Case studies and impact analysis needs to be done on a regular basis and a cell needs to be in place that oversees the effect of the implementation of plans and policies. Professional opinions need to be listed out so as to enable the President to consider various options that may have a wide ranging impact on several fields such as the economy, security, international trade, general public, administration and so on. Moreover issues need to be addressed to without much loss of time thus facilitating desired and faster results. This paper aims at achieving the very purpose it has been made up for.