1. Home
  2. American History
  3. The End of the Millennium
  4. It's the Economy, Stupid

It's the Economy, Stupid

Although George Bush enjoyed a very favorable rating among Americans for his handling of the Persian Gulf Crisis, people were far less accepting of his leadership when it came to the nation's economy. The recession hit American workers and families hard, and President Bush failed to acknowledge this fact and provide solutions. That left someone else to take the lead, and Governor William Jefferson “Bill” Clinton of Arkansas stepped into the spotlight, calling himself “a new kind of Democrat.”

From the start, Americans appreciated this attitude of being liberal on social issues and conservative on economic matters. Clinton chose Senator Al Gore of Tennessee as his running mate. Assembling a campaign team led by strategist James Carville in what was dubbed the “Clinton War Room,” the forty-six-year-old governor was guided by one campaign motto above all others: “It's the economy, stupid.” This slogan had apparently been tacked up high in campaign headquarters and served as a reminder of what most concerned Americans.

In 1963, Bill Clinton was elected as an Arkansas delegate to Boys Nation, a government study program for youth in Washington, D.C., where he shook President John F. Kennedy's hand at a White House Rose Garden ceremony. This famous photo was displayed during the Democratic National Convention in 1992 as the party depicted Clinton as the boy from Hope, Arkansas.

Clinton dodged allegations of womanizing and dealt with having been in Oxford, England, as a Rhodes scholar, while his contemporaries were drafted into Vietnam service. He jammed with musicians on late-night talk shows with his saxophone, and used other media opportunities to the fullest advantage. Meanwhile, incumbent president George Bush angered people as he abandoned his “Read my lips: No new taxes!” pledge.

Ross Perot, the self-made man with billions to spend on his campaign, focused the electorate on the burgeoning federal deficit. His appearance on CNN's Larry King Live proved the power of the electronic media in modern-day political campaigns. Of course, as a billionaire, he could well afford to run thirty-minute “infomercials” conveying his message and economic plans. Oddly enough, he dropped out of the race in July 1992, citing personal and family reasons, only to re-enter in October. That November, he received 19 percent of the national vote, the highest percentage any independent candidate had won. Had those who voted for the third-party candidate favored the president, Bush would have won in a landslide. But the new kid on the block won this election — Bill Clinton garnered 43 percent of the popular vote and a majority of the Electoral College. It seemed voters had gone for the Clinton-Gore ticket for change.

Clinton's Charm and Early Accomplishments

To win election, Bill Clinton capitalized on a certain charisma he had, being the first of the baby boom generation to be elected to the presidency. He appointed more women and minorities to high government office and cabinet posts than any previous president. Among his appointments were Attorney General Janet Reno, Secretary of Agriculture Mike Espy, Secretary of Commerce Ron Brown, Secretary of Health and Human Services Donna Shalala, and two new Supreme Court justices, Stephen G. Breyer and Ruth Bader Ginsburg. Madeleine Albright became the first female secretary of state during Clinton's second term in office.

From the start, it seemed that Clinton had well-organized enemies. Questions were posed regarding failed real estate dealings the Clintons had been involved with in Arkansas. A second scandal faced the president when a former Arkansas state employee, Paula Jones, filed suit alleging sexual harassment during Clinton's tenure as governor.

The first lady, Hillary Rodham Clinton, took an active role in her husband's administration, spearheading the effort to focus on health care, an issue the voters deemed important. Clinton had promised guaranteed health insurance for every American, but the first lady's efforts were stalled by controversy over her role and opposition from those who disliked the federal government's involvement in medical care. Thus, health care reform was never truly accomplished.

Clinton remained popular among women for his advocacy of their concerns. He overturned restrictions on abortions and signed into law a family leave bill requiring companies with more than fifty workers to allow parents up to twelve weeks of unpaid leave a year to cope with family issues. Clinton tackled discrimination against homosexuals in the armed forces with a policy that would become known as “Don't Ask, Don't Tell.”

What is the “Don't Ask, Don't Tell” policy of the United States military?

This was the compromise that President Bill Clinton and the Joint Chiefs of Staff reached concerning homosexuals in the armed forces. Although the ban remained in effect, the military could not ask if a person was homosexual.

Thanks to his economic policies and budget packages, the federal deficit shrank. Clinton also saw the passing of the Brady Bill, named for President Reagan's press secretary, James Brady, who was shot in the attempt on Reagan's life. This bill made it more difficult for criminals to purchase handguns.

A Contract with America

A Republican, Newt Gingrich was elected to the U.S. House of Representatives from Georgia after two prior unsuccessful bids for Congress. His conservative platform focused on lowering taxes. He and his cronies were known for their long-winded speeches late into the night. In 1987, Gingrich initiated ethics charges again Speaker of the House Jim Wright, eventually leading to Wright's resignation. Gingrich's passionate pursuit of shrinking the federal government (his “Contract with America”) was widely publicized, enabling his fellow Republicans to gain control of both the House and the Senate in the 1994 elections. Sworn in as Speaker of the U.S. House of Representatives, Gingrich was later reprimanded in 1997 by House members for ethics violations, giving false information, and using tax-exempt donations for political activities.

Victories and Stalemates

Clinton and Congress were successful at passing the presidential line-item veto, which allowed the president to veto individual items on appropriations bills. But this was challenged in court as being unconstitutional. Many measures were halted by the president's veto or threatened veto of Republican initiatives.

Clinton and Congress were unable to reach an agreement on the federal budget for 1996. Debate brewed over how to reform welfare, Medicare, Medicaid, and other programs. The result was two partial shutdowns of the federal government. Finally, Clinton and Congress agreed on budget concessions. Republicans got the spending cuts they wanted, but Clinton managed to maintain educational and environmental programs that the administration deemed vital. Clinton did sign an increase in the minimum wage, as well as making it easier for workers to transfer from one employer's health insurance to another without losing coverage (even with a preexisting condition). Clinton also overhauled the welfare program, which had been a 1992 campaign promise.

As a member of Congress, Al Gore earned a reputation for his stand on environmental issues, pioneering efforts to clean up hazardous waste dumps and prevent depletion of the earth's ozone layer. He wrote Earth in the Balance: Ecology and the Human Spirit, published in 1992.

In addition, the president lobbied hard for sweeping trade legislation lowering the barriers to trade with other nations. In doing so, he faced the opposition of many supporters, including trade unions, as they feared American jobs would be lost to a cheaper labor market. But Clinton maintained, despite vigorous debate among the likes of H. Ross Perot, that the North American Free Trade Agreement (NAFTA) was necessary. Clinton persuaded members of his own party to join in the largely Republican-backed legislative vote. The treaty was passed in the House of Representatives in November 1993. In foreign affairs, Clinton helped secure peace in Haiti by reinstating ousted president Jean-Bertrand Aristide.

  1. Home
  2. American History
  3. The End of the Millennium
  4. It's the Economy, Stupid
Visit other About.com sites:

Netplaces.com, a part of The New York Times Company.

All rights reserved.