According to Bush, how might the Gulf War make America's economic situation worse? Higher oil prices and higher defense costs would reduce the fiscal deficit problem. Higher oil prices and higher defense costs would anger people by necessitating higher taxes. Higher oil prices and higher defense costs would mean slower growth and more debt. Higher oil prices slow our growth, and highe defense costs would only maketour fiscal deficit problem worse. That deficit was already greater than it should have been - a projected \( \$ 232 \) billion for the coming year. It must - it will - be reduced. -President George H. W. Bush, September 11, 1990

The Gulf War was primarily fought over oil interests and control in the region, which is critical for global economies. As oil prices spiked due to the conflict, the ramifications were felt worldwide. Americans faced increased costs, from filling up their gas tanks to heating their homes, which put a strain on household budgets and contributed to inflationary pressures. This led to a ripple effect, negatively impacting spending and overall economic growth. Moreover, the defense spending required for the Gulf War placed immense pressure on the U.S. budget. With the fiscal deficit already a looming concern, the additional military expenditures forced the government to consider tough measures, like raising taxes or cutting other essential services. This created a political conundrum as citizens became increasingly frustrated with the economic situation, leading to a potential backlash against the administration’s policies.