Unit V – U.S Economic History Today Reagan, Bush, Clinton, and Bush

Reagan’s Economic Policies - Reaganomics 1:33 min. Supply-side Economics Reducing Government Domestic Programs Defense Spending Troubled Economy Tax Cuts Growing Federal Debt- National Debt Balance the budget amendment

President Reagan’s Legacy 4:42 min.

Reagan and the U.S. Economy 5:27 min.

Crash of 1987

President George H.W. Bush  Savings and Loan Scandal  Invasion of Panama- “Operation Just Cause”  Tax Cut  Economic Agenda  START  Exxon Valdez  “Read my lips, no new taxes.”

Savings and Loan Scandal  Deregulation eased restrictions so much that S&L owners could lend themselves money  The rip-off began in 1980 when the government raised the federal insurance on S&L's from $40,000 to $100,000 even though the typical savings account was only around $6000.  The goverment bail out will cost the taxpayers over $500 billion to $1.4 trillion dollars when it is over.  If the White House had stepped in and bailed out the S&L's in 1986 instead of delaying until after the 1988 elections, the cost might have been only $20 billion.  With the money lost from the S&L scandals, the government could have purchased 5 million average homes.  The most notorious figure in the S&L crisis was probably Charles Keating, who headed Lincoln Savings of Irvine, California. Keating was convicted of fraud, racketeering, and conspiracy in 1993, and spent four and one-half years in prison before his convictions were overturned. Charles KeatingLincoln SavingsIrvine, CaliforniafraudracketeeringconspiracyCharles KeatingLincoln SavingsIrvine, Californiafraudracketeeringconspiracy

President G.H.W. Bush  I'm the one who will not raise taxes. My opponent says he'll raise them as a last resort, or a third resort. But when a politician talks like that, you know that's one resort he'll be checking into. My opponent won't rule out raising taxes. But I will. And The Congress will push me to raise taxes and I'll say no. And they'll push, and I'll say no, and they'll push again, and all I can say to them is "Read my lips: no new taxes."

Bush – “Oops”  At the end of June 1989, Bush released a statement stating that "it is clear to me that both the size of the deficit problem and the need for a package that can be enacted require all of the following: entitlement and mandatory program reform, tax revenue increases, growth incentives, discretionary spending reductions, orderly reductions in defense expenditures, and budget process reform." The key element was the reference to "tax revenue increases" now being up for negotiation. An immediate furor followed the release. The headline of the New York Post the next day read "Read my Lips: I Lied." New York PostNew York Post

Exxon Valdez Oil Spill 1:29 min.

Operation Just Cause 1:16 min.

President Clinton and the Economy  Balancing the Budget and his agenda  Third world countries  Unemployment  Immigration  Welfare Reform  Health Care Reform  NAFTA and WTO  Internet

Rebuilding Bosnian Economy 1:30 min.

NAFTA- North American Free Trade Agreement  Brings US, Canada and Mexico into a free-trade zone.  Supporters- it will strengthen all three economies, and create more jobs.  Opponents- –American jobs would be transferred to Mexico where wages are lower. More than 100,000 low-wage jobs went to Mexico after NAFTA passed. –Environment would be harmed due to Mexico’s lower standards. –Competition with foreign companies caused US companies to keep wages low.  Treaty Ratified- January 1, 1994

NAFTA 1:34 min.

Free Trade and Global Economy  US joins many countries is adopting GATT- General Agreement on Tariffs and Trade.  WTO- World Trade Organization. (replaces GATT) –Organization that promotes trade and economic development- settling trade disputes and forming rules for global trade. –1999- Demonstration in Seattle that WTO doesn’t use public input, and its decisions harm the environment, poorer countries, and American Manufacturing workers. –Growing importance of Multinational Corporations. (Enron, WoldCom, etc.) Benefit? –Set minimum standards for most forms of intellectual property..  World Wide anti-globalization protests- violent clashes.  FTAA Free trade Area of the Americas- 34 Western Hemisphere countries.

President George W. Bush- Economic policies  Close Elections  Tax Cuts  No Child Left Behind  Social Security Reform  Sept. 11, 2001  War in Afghanistan/Iraq  Dept. of Homeland Security  Patriot Act  Hurricane Katrina and Rita  Enron

Hurricane Katrina 4:42 min.