History 105

History 105

President Clinton ruled the US from 1993 to 2011and during this time. Heenacted multiple economic policies that helped reform the American economy. He brought an economic rebound and aggregated growth. In the early 1990s, the American economy was characterized by sluggish economic development. However, from 1995, there was accelerated employment, wage increment, and economic growth in general. The rebound had three major characteristics. There was an increase in employment. About 22.7 million people were employed. In 1991, the GPD was 3% but increased up to 4.9 by 2000. Bill Clinton also modified the tax system. He increased the taxes for highly paid taxpayers, and cut defence spending and welfare—this increased revenues and decline in spending relative to the size of the economic. The most important of these changes is increased employment. Increase in employment meant that there was growth of more firms and people generated more money. With increased injecting of money to the economy, the country’s economy was able to stabilize. The period of economic rebound teaches us about the major role of consumption in our country. Consumption is the engineering factor towards sustainable growth, and it contributes majorly to the GDP. Therefore, there is a necessity to keep the adequacy of jobs in the country to avoid stunted growth and recession.

Weller, C. (2002). Learning Lessons from the 1990s. retrieved from https://www.epi.org/publication/webfeatures_viewpoints_l-t_growth_lessons/.