Early 90's Recession
From 1990 to 1992, the economy was in a recession due to post-Cold War, which includes inflation and unemployment. This recession started in the late 1980s to the early 1990s due to a drop in the stock market. This market crash was larger than the one in 1929, yet it recovered rapidly until it effected the loan and savings industry. This crisis put the well being of Americans in a vulnerable state. Nevertheless, for the next several years high unemployment, massive government budgetary deficits, and slow Gross Domestic Product were factors during this time period. The unemployment rate sky rocketed because of the lower wages, the stock market crash, and middle class families sinking down into lower/poverty levels. Only the top high percent of the rich were still prospering during the early 1990's. The collapse of the S&L industry negatively impacted the welfare of many American households and precipitated a large government bailout that placed further strain on the budget. The government deficit was a result of the market crash and the amount of money spent by the government reached its high dept limit. Living in America, especially in the middle class, was not a fun time during the early 1990's and late 1980s. Reagan was the president of that time and the deficit increased instead of lowered. The Reagan boom was made under unstable and shaky foundations. You will see in the included tabs that there are graphs that show the change from Bush/Reagan's presidency and Clinton's. Current events can also hold responsible for the causes of the inflation and recession. Moves by the U.S. Federal Reserve to raise interest rates in the late 1980s and Iraq's invasion of Kuwait in the summer of 1990 had something to do with the early 1990's recession.
90's Boom
During the years of 1993 to 2001, the economy flourished known as the "90's Boom" under President Clinton. Things changed when Clinton came into office--raised taxes. The deficit decreased, the debt in the U.S was no longer a burden, and a surplus was maintained for a few years after Clinton left office. Clinton’s major contribution was pushing through the 1993 budget bill, which began to reduce what had become a chronic string of federal deficits. Republicans denounced it as the "largest tax increase in history," though in fact it was not a record and also contained some cuts in projected spending. Republican Rep. Newt Gingrich predicted: "The tax increase will kill jobs and lead to a recession, and the recession will force people off of work and onto unemployment and will actually increase the deficit." But just the opposite happened. Fears of inflation waned and interest rates fell, making money cheaper to borrow for homes, cars and investment. What had been a slow economic recovery turned into a roaring boom, bringing in so much unanticipated tax revenue from rising incomes and stock-market gains that the government actually was running record surpluses by the time Clinton left office. The number of employees on non agricultural payrolls went from 109.7-million in January 1993 (when Clinton took office) to 132.5-million in January 2001 (when Clinton left office). There were 22.8-million new jobs and according to the U.S. Census Bureau, the number of people living in poverty went from 38-million in 1992 to 31-million in 2000. The 1990's were full of economic growth, and some argue it was due to the up-cycle of the economy at the time. Speculative market (where stocks are rapidly bought and sold) drove the economy in the 1990's. Decade ends with a 4% unemployment rate. personal incomes doubled from the recession in 1990, which meant higher productivity overall. After the 1996 Welfare Reform act, there was a great reduction of poverty rates
Why It's Important Now
In modern times President Obama has adopted the same philosophy or strategy that is similar to Clinton. President Clinton raises taxes for the rich, and many thought it would make the inflation worse, it had the opposite affect. At first things went up, but with the graphs that are provided for you in the extended tabs, you will see in the long run, it helped the economy and it resulted in a first time ever surplus in 400 years. Now Obama is doing the same thing, simply looking at our history. Obama speaks about ‘cutting taxes, especially for the rich’ theory. This theory has been used many times over the years and it has never worked. In fact, it has made it worse. We used it right before the great depression. Coincidence? I think not. We also tried it in the last decade and things didn’t get better. Things got worse again. This theory might sound good to the uneducated, naïve Americans, but it simply doesn’t work. And now, the same people who like this theory, are in congress today. The middle class can’t afford the products of the companies, the CEO’s are earning more than 110 times more than their workers, and its dragging down the entire nation. He talks of inequality, like the article states. A child that was born into poverty, something that he can’t control, only has a 33 percent of making it into the middle class, even if he works his hardest. It’s wrong and it’s the opposite of what America used to stand for. That’s why so many immigrants came to the U.S, they heard it was where one could make it. The land of dreams. Not anymore. The banking industries are constantly tricking customers into deals or contracts that they don’t fully understand and making the interest rates too high, making it almost impossible to pay back any loans or such. His grandmother was a banker her whole life and back then they genuinely wanted to help people, but it’s not like that anymore. The banks are not helping people anymore and it relates to the articles. The banks need to be watched, like Obama’s watchdog idea. The watchdog would help people and watch over any suspicious works that banks can do legally to trick the customer. Obama wants everyone follow the same rules and have equal opportunity in this world. Everyone should be able to go to school or college and not have huge debt afterwards. This is fair and just, he says. By using history as a guideline for the future, President Obama uses the same strategies that worked for President Clinton during the 1990's.
From 1990 to 1992, the economy was in a recession due to post-Cold War, which includes inflation and unemployment. This recession started in the late 1980s to the early 1990s due to a drop in the stock market. This market crash was larger than the one in 1929, yet it recovered rapidly until it effected the loan and savings industry. This crisis put the well being of Americans in a vulnerable state. Nevertheless, for the next several years high unemployment, massive government budgetary deficits, and slow Gross Domestic Product were factors during this time period. The unemployment rate sky rocketed because of the lower wages, the stock market crash, and middle class families sinking down into lower/poverty levels. Only the top high percent of the rich were still prospering during the early 1990's. The collapse of the S&L industry negatively impacted the welfare of many American households and precipitated a large government bailout that placed further strain on the budget. The government deficit was a result of the market crash and the amount of money spent by the government reached its high dept limit. Living in America, especially in the middle class, was not a fun time during the early 1990's and late 1980s. Reagan was the president of that time and the deficit increased instead of lowered. The Reagan boom was made under unstable and shaky foundations. You will see in the included tabs that there are graphs that show the change from Bush/Reagan's presidency and Clinton's. Current events can also hold responsible for the causes of the inflation and recession. Moves by the U.S. Federal Reserve to raise interest rates in the late 1980s and Iraq's invasion of Kuwait in the summer of 1990 had something to do with the early 1990's recession.
90's Boom
During the years of 1993 to 2001, the economy flourished known as the "90's Boom" under President Clinton. Things changed when Clinton came into office--raised taxes. The deficit decreased, the debt in the U.S was no longer a burden, and a surplus was maintained for a few years after Clinton left office. Clinton’s major contribution was pushing through the 1993 budget bill, which began to reduce what had become a chronic string of federal deficits. Republicans denounced it as the "largest tax increase in history," though in fact it was not a record and also contained some cuts in projected spending. Republican Rep. Newt Gingrich predicted: "The tax increase will kill jobs and lead to a recession, and the recession will force people off of work and onto unemployment and will actually increase the deficit." But just the opposite happened. Fears of inflation waned and interest rates fell, making money cheaper to borrow for homes, cars and investment. What had been a slow economic recovery turned into a roaring boom, bringing in so much unanticipated tax revenue from rising incomes and stock-market gains that the government actually was running record surpluses by the time Clinton left office. The number of employees on non agricultural payrolls went from 109.7-million in January 1993 (when Clinton took office) to 132.5-million in January 2001 (when Clinton left office). There were 22.8-million new jobs and according to the U.S. Census Bureau, the number of people living in poverty went from 38-million in 1992 to 31-million in 2000. The 1990's were full of economic growth, and some argue it was due to the up-cycle of the economy at the time. Speculative market (where stocks are rapidly bought and sold) drove the economy in the 1990's. Decade ends with a 4% unemployment rate. personal incomes doubled from the recession in 1990, which meant higher productivity overall. After the 1996 Welfare Reform act, there was a great reduction of poverty rates
Why It's Important Now
In modern times President Obama has adopted the same philosophy or strategy that is similar to Clinton. President Clinton raises taxes for the rich, and many thought it would make the inflation worse, it had the opposite affect. At first things went up, but with the graphs that are provided for you in the extended tabs, you will see in the long run, it helped the economy and it resulted in a first time ever surplus in 400 years. Now Obama is doing the same thing, simply looking at our history. Obama speaks about ‘cutting taxes, especially for the rich’ theory. This theory has been used many times over the years and it has never worked. In fact, it has made it worse. We used it right before the great depression. Coincidence? I think not. We also tried it in the last decade and things didn’t get better. Things got worse again. This theory might sound good to the uneducated, naïve Americans, but it simply doesn’t work. And now, the same people who like this theory, are in congress today. The middle class can’t afford the products of the companies, the CEO’s are earning more than 110 times more than their workers, and its dragging down the entire nation. He talks of inequality, like the article states. A child that was born into poverty, something that he can’t control, only has a 33 percent of making it into the middle class, even if he works his hardest. It’s wrong and it’s the opposite of what America used to stand for. That’s why so many immigrants came to the U.S, they heard it was where one could make it. The land of dreams. Not anymore. The banking industries are constantly tricking customers into deals or contracts that they don’t fully understand and making the interest rates too high, making it almost impossible to pay back any loans or such. His grandmother was a banker her whole life and back then they genuinely wanted to help people, but it’s not like that anymore. The banks are not helping people anymore and it relates to the articles. The banks need to be watched, like Obama’s watchdog idea. The watchdog would help people and watch over any suspicious works that banks can do legally to trick the customer. Obama wants everyone follow the same rules and have equal opportunity in this world. Everyone should be able to go to school or college and not have huge debt afterwards. This is fair and just, he says. By using history as a guideline for the future, President Obama uses the same strategies that worked for President Clinton during the 1990's.