Questions from a novice

I'm a college student with a new found interest in the economic world.
 I have a few questions for all of you business gurus out there.

My questions are mainly concerning the state of the US economy, with
consideration of the past and a look into the near and distant future.
 We all know that we are currently experiencing the fastest GDP growth
rate in 20 years coming in at 7.2%.  What roles did Pres. Bush's tax
cut and the Fed's decision to keep interest rates at 1% play in that
rebound?  To me it makes sense (from a somewhat naive stand point)
that if you give the large businesses a little extra cash in the
pocket they are not only more capable to invest in durable goods,
labor, R&D, etc. but also more willing to make these investments. 
Being that the these large corporations are the largest contributers
to the GPD in the US, this makes sense, but I'm not sure if that's
correct or the entire picture.

What are the short and long term negative effects of these tax cuts
and low interest rates?  Is what a lot of the democratic candidates
saying about these tax cuts correct?  That we run the risk of high
inflation?  If so, how?  I don't understand that.

Also, there was mention of a "devastating Japanese deflation" in an
article in the NYT talking about the rebound and some of the possible
negatives we might face in the future.  What is this terrible Japanese
deflation?  What factors would cause that to happen?

On a more speculative note, what role do you think the US will play in
the world economy in the future?  To me (again a naive point of view)
it seems that we will be the future business leaders of the world. 
With all the middle class tech jobs being shipped over seas we are
taking out the large middle section of our work force, putting them in
various countries, and managing them from home.

I remember reading a couple weeks back a post by a gentleman saying
that "Johnny" wasn't getting a good enough education to compete with
the brain power and incredible work ethic of some of our Asian
couter-parts.  I do not dispute this in the least, but I don't know
that many would make great business men or women (not to say that
there aren't some).  With our average, annual, per-capita GDP growth
rate over the past 100ish years of 1.75% (something no other nation,
to my knowledge, can boast), we have the experience to run a strong
economy.  Because of this, it seems to me that we would make the best
business leaders in the world and that is where we are headed.  If
this is true, and my reasoning isn't faulty, what would you view as
the best business degree to go for?  If my reasoning is faulty what am
I missing?

Thank you for your time.