1990s United States History Notes

The Presidential Election of 1992

1. Ross Perot's Candidacy

   • Texas billionaire.

   • Ran as a third-party candidate.

   • Criticized Bush and Clinton for lacking economic expertise.

   • Gained substantial support due to widespread dissatisfaction with major parties.

   • Received 19% of the popular vote, the best third-party result since Theodore Roosevelt in 1912.

2. Election Outcome

   • Clinton won the election.

   • Setback for Bush given his earlier popularity.

Clinton in Office

1. Policy Shifts

   • Shifted away from some Reagan-Bush era social and economic policies.

   • Appointed minorities and women to his cabinet.

     • Janet Reno: first female attorney general.

   • Appointed abortion rights supporters to the Supreme Court.

     • Ruth Bader Ginsburg

     • Stephen Breyer

   • Instituted "Don't ask, don't tell" policy regarding gay soldiers in the military.

2. Economic Policies

   • Clinton's first budget:

     • Raised taxes on the wealthy.

     • Expanded the Earned Income Tax Credit (EITC).

   • EITC:

     • A cash payment for low-income workers.

     • Began during the Ford administration.

     • Considered the most effective anti-poverty policy since the Great Society.

     • Helped more than 4 million Americans rise above the poverty line during Clinton's presidency.

       • Half of them children.

3. Free Trade

   • Supported free trade, similar to his predecessor.

   • Obtained congressional approval of the North American Free Trade Agreement (NAFTA) in 1993.

     • NAFTA: A free-trade zone consisting of Canada, Mexico, and the United States.

     • Negotiated by the Bush administration.

     • Faced opposition from unions and environmentalists.

4. Health Care Plan

   • Major policy initiative led by Hillary Rodham Clinton.

     • A lawyer with her own career.

   • Aimed to address rising health care costs and the increasing number of uninsured Americans.

   • Unlike the US, Canada and western Europe provided universal medical coverage.

   • The United States had advanced medical technology but an incomplete health insurance system.

     • The Great Society provided coverage for the elderly and poor through Medicare and Medicaid programs.

     • Many employers offered health insurance, but millions lacked coverage.

   • Clinton's plan aimed to provide universal coverage through large medical care businesses.

     • Details of the Plan

       • Announced with fanfare by Hillary.

       • Faced attacks from health insurance and drug companies fearing government regulations.

       • Regulations aimed to limit reimbursement for procedures and drug prices.

       • Too complex for voters to understand.

       • Criticized for expanding the bureaucracy.

       • Died in 1994.

The "Freedom Revolution"

1. 1994 Midterm Elections

   • Voters turned against Clinton due to a slow economic recovery and perceived lack of accomplishments.

   • Republicans gained control of both houses of Congress for the first time since the 1950s.

     • Called it the "Freedom Revolution."

2. Newt Gingrich

   • A conservative congressman from Georgia.

   • Became Speaker of the House.

   • Masterminded the Republican campaign.

   • "Contract with America":

     • Promised to:

       • Curtail the scope of government.

       • Cut taxes and economic/environmental regulations.

       • Overhaul the welfare system.

       • End affirmative action.

   • Republicans moved to implement the contract, approving cuts in social, educational, and environmental programs, including Medicare.

Government Shutdown

1. Budget Impasse

   • The President and Congress at odds over the budget.

   • The government shut down nonessential operations in December 1995.

2. Public Reaction

   • Gingrich assumed the public supported the Contract with America.

   • Discovered that they voted against Clinton, not for the full Contract implementation.

   • Most Americans blamed Congress for the impasse, and Congress soon retreated.

Clinton's Political Strategy

1. Rebuilding Popularity

   • Like Truman, Clinton rebuilt his popularity by campaigning against a radical Congress.

   • Opposed extreme parts of their program while adopting others.

2. "The Era of Big Government is Over"

   • In 1996, Clinton announced that "the era of big government is over."

     • Signaled a move away from Democratic liberalism and toward the anti-government outlook associated with Republicans.

3. Welfare Reform

   • Clinton signed a Republican bill abolishing Aid to Families with Dependent Children (AFDC), or "welfare."

     • Replaced AFDC with grants to states.

     • Set strict limits on how long recipients could receive payments.