Bush 43 second term — Katrina, Iraq surge, GFC+TARP

Doctrine — stated goals and content

Bush 43's second term is remembered for three shocks that overwhelmed the "compassionate conservative" / ownership-society domestic agenda. (a) Economic school: supply-side tax cuts + deregulatory stance inherited from first term, pivoting in late 2008 to ad hoc financial-stabilisation statism under Paulson/Bernanke — TARP USD 700bn (Oct 2008), conservatorship of Fannie/Freddie (Sep 2008), Bear Stearns rescue via JPM (Mar 2008), AIG USD 85bn bridge (Sep 2008), but Lehman bankruptcy (15 Sep 2008) marked the point of no return. (b) Left-right: centre-right / right domestically; hawkish-interventionist on foreign policy (Iraq surge Jan 2007 +30k troops). (c) Dated policies: Katrina response Aug-Sep 2005, Deficit Reduction Act Feb 2006, Pension Protection Act Aug 2006, Iraq surge Jan 2007, Economic Stimulus Act Feb 2008 (rebates), HERA Jul 2008, TARP Oct 2008, auto bailout Dec 2008. (d) Popularity: won 2004 re-election 50.7% / 286 EVs; approval 50s early 2005, collapsed after Katrina + Iraq deterioration, floor ~25% by late 2008 — among lowest exit approvals on record. (e) Coherence: low — second term traded domestic reform ambition (Social Security privatisation failed early 2005, immigration reform failed 2007) for crisis management; revealed content pivoted from tax-cut continuity to the largest federal balance-sheet intervention since the New Deal.