9.4 A Changing Economy

• Republicans - renominated George H.W. Bush

• Ross Perot - third party, serious challenger

• Democrats win - Bill Clinton - moderate “New Democrat” focusing on the economy (jobs, education, healthcare), won back some of the south, majority elderly and blue-collar workers from Republicans

• passed Family and Medical Leave Act, motor voter law, Brady Bill

• Anti-Crime Bill (1994) - funded police protection and crime-prevention programs, banned sale of assault rifles, angering gun lobby led by National Rifle Association (NRA)

• deficit reduction budget

• balanced budget (1996) - Medicare and Social Security intact, limited welfare, curbed immigration, increased minimum wage, deficit eliminated 1998

• re-elected 1996 - positioned himself as a moderate, Republicans as extremists, fast-growing economy

• prioritized social security over tax cuts when deciding what to do with surplus revenues

Republicans gained control of both houses in Congress in the midterm elections of 1994

• led by Newt Gingrich - representative, later speaker of the house

• contract with America - Republican Congress’s list of policy prioritized, well-organized effort

• technological innovations - Internet increased national productivity and created e-commerce, other tech advancements

• growth and development opportunities across the globe

• economic boom in 1990s due to increased profitability of American business

• globalization

• surveillance capitalism and digital security risks arise, little regulation

increased trade and communication, movement of capital around the world promoted development of global and regional economic organizations

• North American Free Trade Agreement (NAFTA) - signed by Clinton over objection of union leaders, created free-trade zone with Canada and Mexico

• World Trade Organization (WTO) (1994) - established to oversee trade agreements, enforce trade rules, and settle disputes

• International Monetary Fund (IMF) and World Bank - made loans and supervised economic policies of poorer nations with debt troubles

• Group of Eight (G8) - world’s largest industrial powers 2000 (Canada, France, Germany, Italy, Japan, Russia, UK, U.S.), tensions caused by gaps between rich and poor nations

uneven distribution of wealth, top 1 percent held 43% of nation’s wealth, largest gap between lowest and highest paid workers, argued to be caused by decline of unions, concentration of wealth similar to Gilded Age