Impact on U.S. economy

The events of 9/11 also drastically altered our national perspective in domestic and economic policy, as these followed the fear, not the country’s needs. Some important events marking the path of U.S. economic policy include:

Department of Homeland Security, Nov. 24, 2002 The Homeland Security Act created a new cabinet-level federal agency to consolidate and expand spending on public security. The new department soon would employ more than 200,000 people and spend more than $40 billion annually.

Tax cuts and credits, May 28, 2003 The Jobs and Growth Tax Relief Reconciliation Act of 2003 reduced tax rates and increased tax credits for all Americans, especially high earners and businesses, with the intention of stimulating consumer spending and economic growth. The act contributed to rapidly rising budget deficits.

The ‘Great Recession,’ December 2007 The American real estate and related investment markets collapsed, causing a string of business bankruptcies and a loss of 8.4 million American jobs over the next two years. The Great Recession spread and led to economic contraction around the world.

Massive government stimulus, Oct. 3, 2008 The Emergency Economic Stabilization Act of 2008 began a series of efforts by the federal government to bail out the economy by purchasing assets others would not buy and investing in projects that created jobs. The initial act authorized the U.S. Treasury to spend $700 billion, spurring unprecedented federal budget deficits.

“Occupy Wall Street,” Sept. 17, 2011 Protests began in New York City and spread to the cities across the U.S., especially among young citizens, demanding attention to growing income inequality, stagnant wages and limited professional mobility in American society after the “Great Recession.”

Bernie Sanders, 2016 Sen. Bernie Sanders from Vermont ran for president, attracting a nationwide following for policies designed to restore greater wealth equality in the United States. He later lost in the primary to Hillary Clinton.