George W. Bush
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Governor Bush with wife, Laura, and father, former President George H. W. Bush, at the dedication of the George Bush Presidential Library, November 1997.
2.5%, considerably below the average for business cycles from 1949 to 2000. Bush entered office with the Dow Jones Industrial Average at 10,587, and the average peaked in October 2007 at over 14,000. When Bush left office, the average was at 7,949, one of the lowest levels of his presidency. Unemployment originally rose from 4.2% in January 2001 to 6.3% in June 2003, but subsequently dropped to 4.5% as of July 2007. Adjusted for inflation, median household income dropped by $1,175 between 2000 and 2007, while Professor Ken Homa of Georgetown University has noted that "after-tax median household income increased by 2%" The poverty rate increased from 11.3% in 2000 to 12.3% in 2006 after peaking at 12.7% in 2004. By October 2008, due to increases in domestic and foreign spending, the national debt had risen to $11.3 trillion, an increase of over 100% from the
start of the year 2000 when the debt was $5.6 trillion. By the end of Bush's presidency, unemployment climbed to 7.2%. The perception of Bush's effect on the economy is significantly affected by partisanship. In December 2007, the United States entered the longest post-World War II recession, which included a housing market correction, a subprime mortgage crisis, soaring oil prices, and a declining dollar value. In February, 63,000 jobs were lost, a five-year record. To aid with the situation, Bush signed a $170 billion economic stimulus package which was intended to improve the economic situation by sending tax rebate checks to many Americans and providing tax breaks for struggling businesses. The Bush administration pushed for significantly increased regulation of Fannie Mae and Freddie Mac in 2003, and after two years, the regulations passed the House but died in the Senate. Many Republican senators, as well as influential members of the Bush Administration, feared that the agency created by these regulations would merely be mimicking the private sector’s risky practices. In September 2008, the crisis became much more serious beginning with the government takeover of Fannie Mae and Freddie Mac followed by the collapse of Lehman Brothers and a federal bailout of American International Group for $85 billion. Many economists and world governments determined that the situation became the worst financial crisis since the Great Depression. Additional regulation over the housing market would have been beneficial, according to former Federal Reserve Chairman Alan Greenspan. Bush,