Answer:
True
Explanation:
President Bush has actually established a policy of tax cuts for companies and investors, believing that this would promote an economic expansion in the USA. According to his reasoning, with the reduction of taxes, companies and investors would have more capital to invest in their activities, which would move the national economy and promote a great economic expansion. However, this strategy showed a totally opposite result. This is because entrepreneurs and investors are people of high social class who have a large economic income and therefore can pay higher taxes. Lowering these taxes creates an economic deficit in the country, increasing debts and social inequality.
The failure of this strategy is due to the fact that lowering the taxes of the upper social classes, causes the increase of the lower social classes, which do not have enough economic power to deal with this responsibility.
