Economy of the 1990s

1990 Budget Enforcement Act Created caps for discretionary spending and created “pay-as-you-go” rules for certain taxes and certain entitlement programs. This Act raised taxed and was signed by President George H.W Busch.

1990s Early Recession This recession lasted from July 1990 to March It was the largest recession since that of the early 1980s. Help contribute to Bush’s re-election defeat in Was mainly attributed to the workings of the business cycle and restrictive monetary policy. This recession showed the growing importance of financial markets to the American and world economies

1992 Presidential Election This campaign was important because of the presence of three major candidates as well as the emphasis of economic issues to the campaign. The federal budget deficit and national debt were important campaign issues. Busch lost to Bill Clinton because he failed to address concerns about the nations economy like Clinton.

1993 Omnibus Budget Reconciliation Act Better known as the Deficit Reduction Act of It was President Clinton’s first budget. The fiscal year 1994 budget proposed the highest peace-time tax increases in United States history, cut appropriation spending, and renewed the framework of the Budget Enforcement Act of 1990

1994 Midterm Elections The Republican Party gained the majority of seats in the house for the first time since This was caused by a rise in U.S GDP, high unemployment, and continued inequality starting at the beginning of Clintons presidency. Also popular discontent with state of the nation’s economy helped give the republicans the edge they needed.

Government Shutdown From November 14 through November 19, 1995 and from December 16, 1995 to January 6, 1996 the U.S Government was shut down due to budgetary disputes between Congress and the White House. The shutdown started by a dispute between Democratic President Bill Clinton and Republican Speaker Newt Gingrich over domestic spending cuts in the fiscal year 1996 budget. This resulted in a bipartisan agreement to balance the budget in seven years time.

1997 Balanced Budget and Taxpayer Relief Act The Balanced Budget Act(spending bill) and the Taxpayer Relief Act (tax bill) enforced the elimination of the annual budget deficit by Both Bills were passed by Congress by a large majority and signed into law by Bill Clinton prior to the August 1997 congressional recess.

New Economy during the 1990s, the national debt increased by 75%, GDP rose by 69%, and the stock market as measured by the S&P 500 grew more than threefold

Dot-Com boom From 1994 to2000 real output increased, inflation was manageable and unemployment dropped to below 5%, resulting in a soaring stock market