Barack Obama and the Bush Tax Cuts (A)

Case Solution

Matthew C. Weinzierl, Eric Werker
Harvard Business School ()

As his inauguration approached, President-elect Obama faced a financial sector collapse, a costly bailout, and massive public deficits. Given the recession in the economy, near-zero interest rates, and rising unemployment, Obama had to decide whether and how much a fiscal stimulus should be used to jump-start the economy. To help students understand Obama’s options, the case examines both President George W. Bush’s recent tax cuts, including their justification for managing supply and demand, and the long history of the fiscal policy in the United States. Instructors may also receive a teaching note written by the author of this case that suggests how this case can be used effectively in the classroom.

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