What was George H. W. Bush’s response to the bleak economic outlook?

Taxes. President Bush won passage for two major tax cuts during his term in office: The Economic Growth and Tax Relief Reconciliation Act of 2001 and the Jobs and Growth Tax Relief Reconciliation Act of 2003. Collectively, they became known, analyzed, and debated as the "Bush tax cuts".

i believe it is capitalists.  

declare war, appoint military officers, sign treaties, make alliances