George H. W. Bush

Problems Growing deficit Slowing economy Recession Rising unemployment

Slowing economy End of Cold War=Reducing armed forces –Cancel orders for military equipment –Downsizing 1980s: US borrows $$ –1990s: Begin paying debt

Solution..? Proposed: –Cut capital gains tax (tax paid by businesses when sell stocks) “tax break for rich”-Read my lips: no new taxes –Democrats defeat it –Agreed to tax increase for cuts in spending

The Clinton Years

Clinton’s Agenda Raising taxes/cutting gov’t spending Health care –Hillary Rodham Clinton –Health benefits for all Americans

Clinton’s Agenda (cont’d) Education AmeriCorps –Students work to: Improve low income housing Teach children to read Clean up environment

Clinton’s Agenda 2 nd Term Balanced Budget –1998: surplus Adoption and Safe Families Act $500 per child tax credit Children’s Health Insurance Program

Scandal! 1.) Accused of Whitewater Development in Arkansas –arranging illegal loans for Arkansas real estate company 2.) Perjury: lying under oath about personal relationship

Result Kenneth Starr as independent counsel Ruled: 1.) obstructed justice** 2.) abused power 3.) perjury*** ****impeachment**

Feb 12, 1999, Senate votes: –1.) (perjury) not-guilty –2.) (obstruction of justice) /3 vote needed to remove from office

Mini clip: clinton’s impeachment