The Economic Prosperity Of The United States Economy

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“The United States economy grew by an average of 4 percent per year between 1992 and 1999” (Pethokoukis, 2015). The year 1991 began with the United States in a recession. Although short lived, ending in March, it lasted nearly 9 months. Many factors played a role in this recession, beginning with the stock market crashing in 1987. Another factor was the savings and loan crisis in 1989, which according to Kimberly Amadeo was considered the greatest bank collapse since the Great Depression. (Amadeo, n.p). The Gulf War, which began in 1990, was another factor contributing to this recession causing an increase in gas and oil prices. The economic prosperity of the 1990s was mainly due to the internet and the huge increase in technology industries. “Personal computers and the Internet came of age, bringing a revolution in the efficiency of processing information and making workers more productive. Manufacturing companies embraced more efficient production methods” (Jackson, 2007). President Bill Clinton signed the Omnibus Budget Reconciliation Act in 1993, which raised taxes and cut spending. Many credit this bill with helping set the stage for the large budget surpluses of the late 1990s because the increased marginal tax rates generated billions of dollars in revenue for the federal government. From November 14 through November 19, 1995 and from December 16, 1995 to January 6, 1996 the U.S. government was shut down as a result of a budgetary impasse between Congress and
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