324 a short history of the united states
was the proposed No Child Left Behind Act that aimed to improve pri-
mary and secondary schools by directing federal money toward those
institutions that raised the level of students’ performance in math, sci-
ence, and English. By establishing federal standards in these academic
areas—historians were particularly distressed because history was
omitted from the list—this legislation undercut the authority of local
and state school boards. Critics argued that the program emphasized
testing and not teaching.
It soon became clear that the Bush administration supported and
wished to advance the interests of American business. That fact was
emphasized by a secret meeting Vice President Cheney, a former CEO
of Halliburton, a leading oil equipment company, held with executives
from the oil-producing companies. The participants agreed to an en-
ergy policy that approved the drilling of oil in Alaska’s National Wild-
life Refuge and provided subsidies for extracting oil from the Gulf
of Mexico. The administration also interpreted the Clean Air Act so as
to benefit the electric utilities, and put the Environmental Protection
Agency under the direction of men and women who understood the
value of corporate participation.
Inevitably, business leaders took advantage of the situation, and a
number of corporate scandals resulted, the most prominent involving
Enron, the Houston- based energy enterprise. Price rigging, fraudulent
accounting practices, and insider trading all contributed to Enron’s col-
lapse. Thousands of employees lost their jobs and pensions. Offi cers of
the company were indicted, found guilty, and imprisoned. Enron’s ac-
counting firm, the venerable Arthur Andersen Company, closed its
doors as a result of its actions in attempting to cover up the scandal.
Business especially benefited from Bush ’s insistence on cut ting ta xes.
Like Reagan before him, Bush argued that the economy would grow as
a result of tax cuts and that all citizens would share in the anticipated
prosperity. The young President quickly implemented his plans. The
Economic Growth and Tax Relief Act of 2001 cut income taxes, phased
out the estate tax by 2010 unless Congress intervened, and extended
the earned income credit for low-income families and individuals. Two
years later further tax cuts were enacted. The taxes on dividends and
capital gains were reduced. And although middle-class and low-income
families benefited by these cuts, the wealthy benefited the most.