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Election of 1992
Bill Clinton, the youthful governor of Arkansas, won the Democratic nomination.
Clinton presented himself as a moderate "New Democrat," focusing on economic issues like jobs, education, and health care.
His campaign strategy centered on the economy, appealing to the "vital center" of voters.
Despite a strong third-party challenge from Ross Perot, Clinton won the election with 370 electoral votes and 43% of the popular vote, defeating President George H. W. Bush.
Balanced Budget
In 1996, Clinton and Congress reached a compromise on a budget that preserved Medicare and Social Security benefits, reformed welfare with a five-year limit, and increased the minimum wage.
The budget, along with earlier spending cuts, tax increases, and strong economic growth, helped eliminate the federal deficit by 1998.
Clinton's administration achieved a $63 billion surplus over two terms, the first federal surplus since 1969.
Clinton Reelected
Clinton positioned himself as a moderate during his presidency, balancing the budget and reforming welfare while portraying Republicans as extremists.
He was reelected in 1996, becoming the first Democrat since Franklin Roosevelt to win a second term.
The Republicans, however, retained control of both houses of Congress.
Tax Cuts Versus Social Security
The late 1990s economic prosperity led to debates on how to use the projected $4.6 trillion federal surplus.
Congress and Clinton compromised on tax cuts for estates, capital gains, and families, but Republicans pushed for further cuts.
Clinton preferred using the surplus to support Social Security, expand Medicare, and reduce the national debt.
Clinton's Impeachment
Clinton faced personal scandals that led to his impeachment by the Republican House in 1999 for lying under oath about sexual relations and related abuses of power.
He was not convicted, earning the nickname "Slick Willie" for his ability to navigate out of trouble.
Economic Expansion
During Clinton’s presidency, the U.S. experienced its longest peacetime economic expansion, with growth rates exceeding 4% annually.
Increased productivity, driven by technological innovations, fueled this economic boom.
Technological Innovations
The rise of the Internet, personal computers, software, and wireless communications significantly boosted national productivity.
High-tech companies like Apple, Intel, Microsoft, Amazon, AOL, Yahoo, and Google led the “dot-com” boom.
Medical advancements included DNA testing, human genome mapping, and noninvasive surgeries, contributing to growth in the medical field.
Global Impact
Technology flattened global competition, allowing people worldwide to connect and create wealth regardless of location.
This shift in global dynamics was described by Thomas Friedman in his book, The World is Flat.
Economic Boom of the 1990s
American businesses became more efficient, leading to increased profitability and low inflation.
The stock market saw record gains, with the number of millionaire households quadrupling.
Unemployment rates fell to a 30-year low of 3.9% by 2000, benefiting even African American and Hispanic communities.
Globalization
Trade and communication surged, leading to the formation of global economic organizations like the WTO, IMF, and World Bank.
NAFTA created a free-trade zone with Canada and Mexico, despite concerns about job losses.
The G8, composed of the world’s largest industrial powers, controlled two-thirds of global wealth, but emerging economies like China, India, and Brazil began to outpace older industrial powers.
Digital Security and Privacy
The rise of the Internet raised concerns about digital privacy and security.
Large tech companies like Facebook and Google were criticized for mishandling personal data, leading to fears of "surveillance capitalism."
Income and Wealth
Homeownership increased to 67.4% during the 1990s, and per capita income rose significantly.
Despite overall wealth growth, income inequality continued, with the top 1% owning 35% of the nation's wealth by 2007.
The concentration of wealth raised concerns about the potential drift towards oligarchy and autocratic governance, reminiscent of the Gilded Age.
Wealth Inequality
By the late 2010s, wealth concentration intensified, with the top 1% holding 43% of the nation's financial wealth.
Scholars linked the decline of unions to the rising inequality in income and wealth.
This inequality prompted debates about its compatibility with democracy and concerns over potential autocratic shifts in government.
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