| HBS Case Collection
(Revised from original 2009 version)
Barack Obama and the Bush Tax Cuts (A)
As his inauguration approached, President-elect Obama faced a financial sector meltdown, a costly bailout, and massive government deficits. With the economy in recession, interest rates near zero, and joblessness on the rise, Obama needed to decide whether, and how much, to use fiscal stimulus to resuscitate the economy. To help students understand Obama's options, the case reviews both the recent tax cuts under President George W. Bush, including the supply-side and demand-management justification given for them, and the broad history of fiscal policy in the United States.
Keywords: Decision Choices and Conditions;
Borrowing and Debt;