Toward the Twenty-first Century: A Reinvigorated Economy, 1993–2000

Abstract

In his 1992 run for the Presidency, William Clinton stated that the critical issue of his campaign was the economy. Rather than leading to strong economic growth benefiting the entire population, the policies of the Reagan and Bush administrations contributed to rising inequality amidst economic stagnation. What was needed was a new economic program, one which “put people first,” one which “put America back to work” (Clinton, 1992). He emphasized economic growth, a quite conventional goal, to occur by fostering free enter-prise and free trade, quite conventional means to achieving growth. Nevertheless, in contrast to the Republican push for a more laissez-faire economy, the Clinton program allowed for a more activist government that would spur the economy. Furthermore, if elected, Clinton would force the wealthy to pay their fair share of taxes, thereby reversing some of the excesses of the Reagan years. The middle class would receive tax breaks, and tax credits would provide the poor with stronger incentives to work.