Unit V – U.S Economic Unit V – U.S Economic History 1945 - TodayHistory 1945 - Today

Reagan, Bush, Clinton, and Reagan, Bush, Clinton, and BushBush

Reagan’s Economic Policies - Reagan’s Economic Policies - ReaganomicsReaganomics

1:33 min.

Supply-side Economics

Reducing Government

Domestic Programs

Defense Spending

Troubled Economy

Tax Cuts

Growing Federal Debt- National Debt

Balance the budget amendment

President Reagan’s LegacyPresident Reagan’s Legacy

4:42 min.

Reagan and the U.S. EconomyReagan and the U.S. Economy

5:27 min.

Crash of 1987Crash of 1987

President George H.W. BushPresident George H.W. Bush

Savings and Loan ScandalSavings and Loan Scandal Invasion of Panama- “Operation Just Invasion of Panama- “Operation Just

Cause”Cause” Tax CutTax Cut Economic AgendaEconomic Agenda STARTSTART Exxon ValdezExxon Valdez ““Read my lips, no new taxes.”Read my lips, no new taxes.”

Savings and Loan ScandalSavings and Loan Scandal Deregulation eased restrictions so much that S&L owners could lend Deregulation eased restrictions so much that S&L owners could lend

themselves money themselves money The rip-off began in 1980 when the government raised the federal The rip-off began in 1980 when the government raised the federal

insurance on S&L's from $40,000 to $100,000 even though the typical insurance on S&L's from $40,000 to $100,000 even though the typical savings account was only around $6000. savings account was only around $6000.

The goverment bail out will cost the taxpayers over $500 billion to $1.4 The goverment bail out will cost the taxpayers over $500 billion to $1.4 trillion dollars when it is over. trillion dollars when it is over.

If the White House had stepped in and bailed out the S&L's in 1986 If the White House had stepped in and bailed out the S&L's in 1986 instead of delaying until after the 1988 elections, the cost might have instead of delaying until after the 1988 elections, the cost might have been only $20 billion. been only $20 billion.

With the money lost from the S&L scandals, the government could have With the money lost from the S&L scandals, the government could have purchased 5 million average homes. purchased 5 million average homes.

The most notorious figure in the S&L crisis was probably Charles The most notorious figure in the S&L crisis was probably Charles Keating, who headed Lincoln Savings of Irvine, California. Keating was Keating, who headed Lincoln Savings of Irvine, California. Keating was convicted of fraud, racketeering, and conspiracy in 1993, and spent four convicted of fraud, racketeering, and conspiracy in 1993, and spent four and one-half years in prison before his convictions were overturned.and one-half years in prison before his convictions were overturned.

President G.H.W. Bush - 1988President G.H.W. Bush - 1988 I'm the one who will not raise taxes. I'm the one who will not raise taxes.

My opponent says he'll raise them as My opponent says he'll raise them as a last resort, or a third resort. But a last resort, or a third resort. But when a politician talks like that, you when a politician talks like that, you know that's one resort he'll be know that's one resort he'll be checking into. My opponent won't checking into. My opponent won't rule out raising taxes. But I will. And rule out raising taxes. But I will. And The Congress will push me to raise The Congress will push me to raise taxes and I'll say no. And they'll push, taxes and I'll say no. And they'll push, and I'll say no, and they'll push again, and I'll say no, and they'll push again, and all I can say to them is and all I can say to them is "Read my "Read my lips: no new taxes."lips: no new taxes."

Bush – “Oops”Bush – “Oops” At the end of June 1989, Bush released a statement At the end of June 1989, Bush released a statement

stating that "it is clear to me that both the size of stating that "it is clear to me that both the size of the deficit problem and the need for a package that the deficit problem and the need for a package that can be enacted require all of the following: can be enacted require all of the following: entitlement and mandatory program reform, entitlement and mandatory program reform, tax tax revenue increasesrevenue increases, growth incentives, discretionary , growth incentives, discretionary spending reductions, orderly reductions in defense spending reductions, orderly reductions in defense expenditures, and budget process reform." The key expenditures, and budget process reform." The key element was the reference to "tax revenue element was the reference to "tax revenue increases" now being up for negotiation. An increases" now being up for negotiation. An immediate furor followed the release. The headline immediate furor followed the release. The headline of the of the New York PostNew York Post the next day read "Read my the next day read "Read my Lips: I Lied."Lips: I Lied."

Exxon Valdez Oil SpillExxon Valdez Oil Spill

1:29 min.

Operation Just CauseOperation Just Cause

1:16 min.

President Clinton and the EconomyPresident Clinton and the Economy

Balancing the Budget and his agendaBalancing the Budget and his agenda Third world countriesThird world countries UnemploymentUnemployment ImmigrationImmigration Welfare ReformWelfare Reform Health Care ReformHealth Care Reform NAFTA and WTONAFTA and WTO InternetInternet

Rebuilding Bosnian EconomyRebuilding Bosnian Economy

1:30 min.

NAFTA- North American Free Trade NAFTA- North American Free Trade AgreementAgreement

Brings US, Canada and Mexico into a Brings US, Canada and Mexico into a free-trade zone.free-trade zone.

Supporters-Supporters- it will strengthen all three it will strengthen all three economies, and create more jobs.economies, and create more jobs.

OpponentsOpponents- - – American jobs would be transferred to American jobs would be transferred to

Mexico where wages are lower. More than Mexico where wages are lower. More than 100,000 low-wage jobs went to Mexico after 100,000 low-wage jobs went to Mexico after NAFTA passed.NAFTA passed.

– Environment would be harmed due to Environment would be harmed due to Mexico’s lower standards.Mexico’s lower standards.

– Competition with foreign companies caused Competition with foreign companies caused US companies to keep wages low.US companies to keep wages low.

Treaty Ratified- January 1, 1994Treaty Ratified- January 1, 1994

NAFTANAFTA

1:34 min.

Free Trade and Global EconomyFree Trade and Global Economy 1994- US joins many countries is adopting 1994- US joins many countries is adopting GATTGATT- -

General Agreement on Tariffs and Trade.General Agreement on Tariffs and Trade. 1995- WTO- World Trade Organization. (replaces 1995- WTO- World Trade Organization. (replaces

GATT)GATT)– Organization that promotes trade and economic Organization that promotes trade and economic

development- settling trade disputes and forming rules for development- settling trade disputes and forming rules for global trade.global trade.

– 1999- Demonstration in Seattle that WTO doesn’t use 1999- Demonstration in Seattle that WTO doesn’t use public input, and its decisions harm the environment, public input, and its decisions harm the environment, poorer countries, and American Manufacturing workers.poorer countries, and American Manufacturing workers.

– Growing importance of Multinational Corporations. Growing importance of Multinational Corporations. (Enron, WoldCom, etc.) Benefit?(Enron, WoldCom, etc.) Benefit?

– Set minimum standards for most forms of intellectual Set minimum standards for most forms of intellectual

propertyproperty.. World Wide anti-globalization protests- violent clashes.World Wide anti-globalization protests- violent clashes. FTAA- 2006 Free trade Area of the Americas- 34 FTAA- 2006 Free trade Area of the Americas- 34

Western Hemisphere countries.Western Hemisphere countries.

President George W. Bush- President George W. Bush- Economic policiesEconomic policies

Close ElectionsClose Elections Tax CutsTax Cuts No Child Left BehindNo Child Left Behind Social Security ReformSocial Security Reform Sept. 11, 2001Sept. 11, 2001 War in Afghanistan/IraqWar in Afghanistan/Iraq Dept. of Homeland SecurityDept. of Homeland Security Patriot ActPatriot Act Hurricane Katrina and RitaHurricane Katrina and Rita EnronEnron

Hurricane KatrinaHurricane Katrina

4:42 min.