9.4 A Changing Economy

election of 1992, Ross Perot, Bill Clinton, Brady Bill, Anti-Crime Bill, National Rifle Association (NRA), Republican Revolution, Revolution of '94, Newt Gingrich, contract with America, Internet, globalization, North American Free Trade Agreement (NAFTA), World Trade Organization (WTO), International Monetary Fund (IMF), World Bank, Group of Eight (G8), top 1 percent

election of 1992

• Republicans - renominated George H.W. Bush

• Ross Perot - third party, serious challenger

• Democrats win - Bill Clinton - moderate “New Democrat” focusing on the economy (jobs, education, healthcare), won back some of the south, majority elderly and blue-collar workers from Republicans

Clinton’s presidency

• passed Family and Medical Leave Act, motor voter law, Brady Bill

• Anti-Crime Bill (1994) - funded police protection and crime-prevention programs, banned sale of assault rifles, angering gun lobby led by National Rifle Association (NRA)

• deficit reduction budget

• balanced budget (1996) - Medicare and Social Security intact, limited welfare, curbed immigration, increased minimum wage, deficit eliminated 1998

• re-elected 1996 - positioned himself as a moderate, Republicans as extremists, fast-growing economy

• prioritized social security over tax cuts when deciding what to do with surplus revenues

Republican Revolution/Revolution of ‘94

Republicans gained control of both houses in Congress in the midterm elections of 1994

• led by Newt Gingrich - representative, later speaker of the house

• contract with America - Republican Congress’s list of policy prioritized, well-organized effort

technology and the changing economy

• technological innovations - Internet increased national productivity and created e-commerce, other tech advancements

• growth and development opportunities across the globe

• economic boom in 1990s due to increased profitability of American business

• globalization

• surveillance capitalism and digital security risks arise, little regulation

globalization

increased trade and communication, movement of capital around the world promoted development of global and regional economic organizations

• North American Free Trade Agreement (NAFTA) - signed by Clinton over objection of union leaders, created free-trade zone with Canada and Mexico

• World Trade Organization (WTO) (1994) - established to oversee trade agreements, enforce trade rules, and settle disputes

• International Monetary Fund (IMF) and World Bank - made loans and supervised economic policies of poorer nations with debt troubles

• Group of Eight (G8) - world’s largest industrial powers 2000 (Canada, France, Germany, Italy, Japan, Russia, UK, U.S.), tensions caused by gaps between rich and poor nations

income and wealth

uneven distribution of wealth, top 1 percent held 43% of nation’s wealth, largest gap between lowest and highest paid workers, argued to be caused by decline of unions, concentration of wealth similar to Gilded Age