the economic policy of the george w. bush administration was characterized by significant income tax cuts in 2001 and 2003, the implementation of medicare part d in 2003, increased military spending for two wars, a housing bubble that contributed to the subprime mortgage crisis of 2007–2008, and the great recession that followed. economic performance during the period was adversely affected by two recessions, in 2001 and 2007–2009.