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This paper examines the causes and events surrounding the American economic expansion period between March 1991 and March 2001. It looks at how this time period was the longest expansion in American history with many unique characteristics since inflation and unemployment were consistently low during this time. The paper further examines how fiscal and monetary policies had an effect on the expansion and also looks at how much of this "boom" was driven by the "new" computer technology. It also examines how President Clinton incorporated history changing policies and laws which further enhanced the economic expansion.
From the Paper:"The budget deficit fell $71 billion between 1992 and 1995. (Frenze, 1996) Credit for this decline in the deficit has been fiercely debated. The Clinton Administration claimed that "...its policies have been responsible for the reduction in the budget deficit and continued economic expansion..." (Frenze, 1996) Mainly, the 1993 tax increase was promoted as a plan to grow the economy by lowering interest rates. The 1993 tax increase was designed to build upon President George Bush's 1990 budget agreement. The Clinton Administration helped the Bush effort "...by further raising taxes on the highest-income taxpayers and reducing spending relative to the budget baseline." (Frankel, 2001) Republican 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." (Clinton Policies, 2007) "Lower interest rates were the key link defining exactly how Clinton policy would boost the economy." (Frenze, 1996) Between 1991 and 1993 interest rates had been falling, shortly after the Clinton tax increases in 1993, interest rates started climbing. Critics claim that the Clinton Administration could not boost economic growth under higher interest rates. One policy change clearly did have a positive effect on the deficit."
Sample of Sources Used:
- Americans Need More Than An Economic Boom. (2005, April 8). Retrieved November 1, 2010, from Center for American Progress: http://www.americanprogress.org/issues/2005/04/b496537.html
- Clinton Policies. (2007, December 7). Retrieved November 3, 2010, from Annenberg Political Fact Check:http://www.factcheck.org/askfactcheck/were_clintons_policies_responsible_for_the_1990s.html
- Curme, O. (2005). A Tribute to Alan Greenspan. Retrieved November 1, 2010, from Battery Ventures Newsletter:http://www.battery.com/content/news/charger/may2005/greenspan.htm
- Frankel, J. (2001, November 2). Retrospective on American Economic Policy in the 1990s. Retrieved October 30, 2010, from Brookings: http://www.brookings.edu/papers/2001/1102useconomics_orszag.aspx?p=1
- Frenze, C. (1996, July). Whither the Budget Deficit -- and Economy? Retrieved October 30, 2010, from United States House of Representatives: http://www.house.gov/jec/fiscal/budget/whither3/whither3.htm
Cite this Term Paper:
Economic Expansion 1991-2001 (2012, May 15) Retrieved September 17, 2019, from https://www.academon.com/term-paper/economic-expansion-1991-2001-150982/
"Economic Expansion 1991-2001" 15 May 2012. Web. 17 September. 2019. <https://www.academon.com/term-paper/economic-expansion-1991-2001-150982/>